Rate change 'threatens regeneration'

Fears over new sites

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Regeneration projects could be hit by the recent change in business rate relief on empty shops, offices and warehouses, it is claimed.

The British Property Federation (BPF), the trade body for the property industry, blames a Treasury switch introduced in April to cut rate relief on empty property.

BPF says regeneration projects could be delayed because costs will rise when new buildings are not occupied for some time after they are completed.

It highlights a 14 acre site at North Star Avenue, Swindon, where Clare's Retail Equipment used to make supermarket self-scan checkouts, shopping trolleys and kiosk units.

The business, which employed nearly 500 people, closed several years ago, leaving the site empty.

BPF says Swindon BC faces £110,000 a year in tax on the site and has now budgeted £430,000 to have it demolished.

Nick Martin, lead member for finance, is quoted as saying: "Swindon, like many other towns across the country, could suffer if regeneration projects are shelved as a result of this.

"We want MPs to take note and for the government to urgently reapply the relief on empty property."

The BPF is warning that unless the government reapplies the relief, regeneration projects could take longer and be much more costly for developers.

It claims that if demand is weak, as it is in an economic downturn, new sites take even longer to fill and the extra tax makes it riskier and more expensive.