Rumours that a supermarket is paying reduced rates on a large empty town centre building have been quashed.

Members of Bingley Chamber of Trade and Commerce were concerned after they were told Sainsbury’s was getting a reduction on its business rates by adopting a charity use for its site in the town.

Rates are not payable on empty buildings, but only for three months after which owners have to start paying in full. Buildings with a charitable use might qualify for reduced rates.

At the Chamber’s last meeting it was suggested the supermarket had installed Wi-fi and had offered to hold documents for charities, leading to outrage from members.

However, the company has said it is not using the site for storage and Bradford Council, which collects rates on behalf of the Government, confirmed full rates are being paid on the building in Main Street, Bingley.

Honorary president of the Chamber, Howard Martin, said: “If that information from the Council is correct, it will allay a lot of the fears and anger from the rumours that they were avoiding paying full business rates by employing charity tactics. That had obviously upset a lot of our members.

“It is reassuring to hear that they are not using these charity loopholes to avoid paying. It doesn’t do the town of Bingley any direct benefit, but it does reassure a lot of members who were under the illusion that there was one rule for them and another for the big boys.”

Sainsbury’s owns the former Bradford & Bingley headquarters, which has been empty since 2009. In 2011 it was given planning permission to demolish the building and replace it with a 40,000 sq ft superstore.

But the plans were halted in March with bosses saying the economy has worsened which had a serious impact “on the viability of the project”.

It said the development was not in its planned works for 2013/14, but the situation was under regular review.

A spokesman for Sainsbury’s said: “The former Bradford & Bingley site is not currently being used for storage.

“However, as part of the ongoing review of this project, it may be something we consider as a sensible temporary use for the building.”

He said there were no plans to install Wi-fi.

Bingley Councillor David Heseltine (Con) said: “If the case is that they’re paying their due demands, then it is disappointing that they don’t wish to develop.”