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Mark has
written to a minister to try to help landlords
that are being forced to pay out business rates on empty properties
despite the
current economic climate
Mark has asked John Healey, Local Government Minister, to look at
the
Government's policy on empty units after complaints from two
constituents
who cannot let their properties.
This year's budget changed the rules on the payment of rates.
Instead of
paying 50 per cent rates on empty shops and offices, owners now
have to pay
100 per cent after three months. In addition, empty factories
and
warehouses will now have to pay 100 per cent rates instead of none
at all after
a rate-free period of six months.
One of the constituents affected is John Poultney who owns six
industrial units
at Gunby Farm near Swadlincote. He cannot let out two units despite
much
effort including offering three months rent-free. One of the units
has been vacant
for a year. From September, he will be paying out £250 a month on
business
rates for the empty units.
Mr Poultney is available for interview. Contact Mark's constituency
office on 01283 551573.
Mark, who
has also signed an Early Day Motion on this issue, said: "I think
most
people would accept that incentivising the occupation or
redevelopment of a
property is desirable and that there are some circumstances where
properties are
left vacant for lengthy periods when alternative occupiers or uses
are available.
That makes an area look tatty and is wasteful.
"However one must recognise that the commercial property market
responds
to the business cycle, and that lack of occupancy can simply
indicate that
tenants are not available.
"South Derbyshire remains a pretty prosperous place, however two
owners
have already drawn to my attention their difficulty in letting
their premises in
current circumstances. They don't believe this difficulty is
long-term,
indicating the need to redevelop. They have, of course, offered
both rent-free
periods and lower rents to induce occupancy.
"I rather agree with them that the imposition of rates after a
relatively short
period of vacancy is unreasonable. At the least it would be wise to
examine the
impact of what is a new policy. One of the predicted outcomes
(which hasn't
happened in these cases) is landlords deliberately making their
premises
unlettable to save on rates."
Mark has received a letter back from Mr Healey stating that the
Government
believes that the reforms "represent a fair balance between
providing incentives
to owners to re-let or re-develop properties". However, the
minister added that
they were monitoring incidences of avoidance and were working with
local
authorities to gain information on how well the reforms were
working.
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Aug 26 - Mark supports landlords struggling to let business units
