Sunday, October 28, 2012

Businesses attack plans to cut empty shop rates as 'tax on distress ...

Business leaders have criticised the Scottish Government's plans to cut rates relief for empty shops and offices.

CBI Scotland said the proposal would increase the burden on companies by ?18m a year and put struggling firms at a disadvantage.

The government has said legislation on the issue is just one part of a plan to support town centres and that rates relief will remain more "generous" than in England.

It said the reforms would encourage landlords to let out empty properties and new rates discounts were being created for entrepeneurs who moved in.

CBI Scotland director Iain McMillan said: "This increase in taxation will make it more expensive for firms to invest and create jobs and is simply the wrong approach.

"Far from being an incentive to encourage the use of empty properties, for many firms this tax rise feels more like a stick than a carrot.

"After all, commercial premises are rarely left empty on purpose as they do not generate an income. Ultimately this proposal remains a tax on distress."

David Melhuish, director of the Scottish Property Federation, said: "Increasing further empty property rates costs is a major blow to businesses and investors.

"This will lead to further administrations as landlords struggle to pay an 80% increase in their vacant rates costs and will put pressure on ratepayers who cannot sublet or dispose of unwanted property assets.

"The increase in vacancy costs is also another deterrent to new commercial development. This is a dangerous tax rise at exactly the wrong time in the economic cycle."

Opposition to the government plan also came from the Scottish Chambers of Commerce, Scottish Retail Consortium, the Business Centre Association, the British Council of Shopping Centres and Scottish Land & Estates.

MSPs will vote on the third and final stage of the Local Government Finance (Unoccupied Properties) (Scotland) Bill on Wednesday.

A Scottish Government spokeswoman said: "Scotland's town centres are blighted by empty buildings and our suggested reforms will encourage landlords to let out empty properties as well as create new rates discounts for entrepreneurs who take on these properties.

"Reform of empty property rates, which currently costs over ?150 million a year, is only part of our proposals to support town centres.

" The total relief package offered by Scottish Government now exceeds ?500 million per year and has either eliminated or substantially reduced business rates for three out of every five commercial properties."

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Source: http://news.stv.tv/politics/197054-businesses-attack-plans-to-cut-empty-shop-rates-as-tax-on-distress/

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