Empty premises tax just puts further strain on firms

Oct 22 2008 by Tony McDonough, Liverpool Daily Post

IN SUCH an uneasy economic climate, which is affecting everyone from large PLCs to smaller businesses, St Helens Chamber is campaigning for Empty Premises Tax to be scrapped because of its negative impact on the local economy.

With a difficult economic situation to face up to, this sort of tax is the last thing business needs.

On the Treasury’s own estimates, the new tax will cost UK businesses £950m this year and a further £900m in 2009-10. The Government introduced the Empty Premises Tax in April, despite the fact that businesses expressed strong concerns about the negative impact it would have – particularly in this tough economic climate.

These changes were introduced as an incentive to bring vacant properties back into use and so help increase the supply of premises. In reality, the Empty Premises Tax has just blown a big hole in an already weak property market. A member of St Helens Chamber has seen their rates bill rise over £1.4m in this financial year alone, which is over 60% of their operating profit.

This level of financial imposition, with no means of offset, is putting strain on a well run active business. This is a stark example of the unforeseen negative effects of this tax.

The Chamber has been working closely with St Helens Council to ensure there is sufficient employment land to accommodate economic growth in the town for the next 15 to 20 years.

However, it is feared that, if this tax liability continues, there will be greater reluctance among developers to be involved in commercial property investment and regeneration schemes not just now, but in the future.

While organisations such as St Helens Chamber can try and put pressure on local authorities to waiver this tax, it is central government that needs to hear the message.

It is important to lobby local MPs, ministers and government departments until they take on board business concerns about this unfair tax.

St Helens Chamber’s campaign forms part of the British Chambers of Commerce national campaign, which is critical in presenting a co-ordinated national campaign to challenge the Government at the very highest level.