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Blears’ craft fair ‘solution’ to empty shops dismissed by BPF and BRC

Business leaders have reacted in anger at proposals announced today by Hazel Blears to fill empty shops with art displays rather than removing the tax burdens driving firms under in the first place, sending thousands to dole queues each week and leaving suburbs looking like ghost towns.

An estimated 15 per cent of shops will be empty come Christmas, but rather than look at re-introducing empty property rate relief to help the landlords of premises previously occupied by firms like Woolworths, the communities secretary says the government is to spend £3million to “help communities find creative ways to reduce the negative impact empty shops have on the high street.”

In addition to thousands of retail properties becoming empty as big names like Zavvi and Whittard’s have joined the brand graveyard, about 2,500 post offices will be lost over the next 18 months, reducing the total number from 14,300 to about 11,800. Added to the massive cuts announced by RBS and other high street banks, it means a huge number of empty retail units coming onto the market.

The BPF’s long-standing battle against empty rates has spawned a campaign website at www.emptyrates.com backed by hundreds of the country’s biggest brands. The BPF is set to write to the chancellor Alistair Darling ahead of next week’s Budget calling for the tax to be scrapped.

Culture Secretary Andy Burnham said: "Culture and creativity are part of the answer to tough economic times. Liverpool's success as European Capital of Culture showed what culture can do to build people and places and create a sense of confidence and pride. I believe that, now more than ever, we should play to our strengths as a creative nation.”

Speaking at the launch event in Stockport today, BPF chief executive Liz Peace, said:

“This is typical government spin, turning a situation of property owners being left with liabilities into an excuse to hold a craft fair. Surely it would make more sense to help firms to not go out of business in the first place and ensure that, should this happen, the landlord isn’t then further penalized by empty rates which is a tax on hardship?

“The closure of countless bank and retail outlets means there will be a massive rise in empty high street space, yet the government is refusing to use a measure included within the empty rates law that allows it to re-apply relief. If that rule wasn’t meant to be used in the current climate then when was it meant to be used?

“While today’s measures may be of help to a small handful of shops, what the public actually wants is an end to empty rates – which are the business equivalent of making the unemployed pay income tax.”

Stephen Robertson, director general of the British Retail Consortium, said: “Confidence in a community comes from a vibrant, economically successful, town centre. Clearly there’s a need for information centres and play groups but local economies need shops to be filled with thriving retailers supporting real jobs.”

For more information and all PR and media queries, please contact Andrew Teacher, Head of Media, on 020 7802 0113/ 07968 124545/ ateacher@bpf.org.uk

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BBC1 Evening News - empty property rates

BBC 1 Breakfast - BPF and BRC discuss landlord moves to cut charges

Regeneration feature in Construction News