Government proposals on empty property tax aren’t good enough, says CLA

The CLA has submitted a response to the Government’s empty property rates consultation, describing the proposals as “not going far enough.”

The Association said the proposals to exempt newly-built commercial property completed between 1 October 2013 and 30 September 2016 from empty property rates for the first 18 months still fail to benefit the rural economy.

CLA North Regional Director Dorothy Fairburn said: “The consultation is a welcome step in the right direction, but it doesn’t go anything like far enough.

“These proposals offer no hope to farmers and rural businesses who were urged to diversify in recent years and, having done so, they are left unable to find tenants and face hefty business rates.

“If the Government wishes to encourage economic growth, it cannot continue to increase taxes on entrepreneurship and diversification.”

The CLA first warned of the empty property tax “time bomb” two years ago, predicting that hundreds of farmers and landowners, who had diversified into commercial lets, would be hit by changes to empty property rates.

In 2011, the Government removed exemptions that meant empty properties with a rateable value below £18,000 did not have to pay rates. Since then, members with empty commercial property valued at more than £2,600 have been liable to pay the full business rate bill – often running into thousands of pounds.

The Association said it has always opposed any increases in the rating of empty properties which have appalling ramifications for the rural economy.

Miss Fairburn said: “If increases are to occur, we need a much longer exemption period than the Government proposes to stimulate speculative development.

“If we are to see any real difference, we need at least five years of relief on empty premises.”