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Survey reveals local authorities' contempt for empty rates

Council officials charged with collecting business rates on empty property are universally opposed to the tax, according to new research by real estate adviser Atisreal and the British Property Federation.

Every respondent to a survey sent to local billing authorities disagreed with the legislation, with over half of respondents said the extra cost to their councils was as much as 20% through the administrative burdens associated with the tax.

Half of respondents also saw the extra rates revenue to the government as between 5 and 40%.

Furthermore, the legislation has affected the billing authorities even more with over a third seeing their annual rates liability increase by over 4%.

Liz Peace, chief executive of the BPF, said: “This is clearly creating many problems for local authorities as well as small and large businesses. We have evidence of councils wasting public money paying empty rates and demolishing public buildings to avoid paying it. The fact that the rates collectors oppose the tax is unsurprising and it’s clear that the damage being done by empty rates is affecting people far outside the property industry.”

Alan Whitelaw, head of rating at Atisreal, comments: “Not only is the empty rates legislation a burden to an already suffering property industry, but it is a burden to the local authorities too, who are having to pay to enforce it and who wholeheartedly disagree with it!”

Over two thirds of the billing authorities also noted that the number of court summonses for non-payment of rates had risen as a result of the legislation and a quarter of respondents saw a rise in bailiff visits increasing.

Whitelaw continues: “It is also disturbing to hear that court summonses and bailiff visits have increased since the legislation has been brought in. These are often small family businesses that have had to shut down due to the economic crisis and are now being crippled by rates bills on their property on top.”

For more information please contact Andrew Teacher on 07968 124545 / ateacher@bpf.org.uk or Maddie Williams on 0207 802 0364 / mwilliams@bpf.org.uk

Downloadable documents

SURVEY REVEALS LOCAL AUTHORITIES' CONTEMPT FOR EMPTY RATES - 19kB.