On the 1st April 2008, new laws regarding empty commercial properties will come into effect. The laws are intended to put an end to empty premises, encouraging businesses to use existing offices, shops and factories. But as is sadly all too frequent with the current Government's legislation, the law of unexpected consequences rules.
Currently, unused commercial premises do not have to pay the National Non Domestic Rate (NNDR). This is not unreasonable as the property is neither producing an income for the owner, nor being a burden on the local community. From April 1st 2008, most property empty for 3 months, or in the case of industrial property, 6 months, will be liable for 100% of the NNDR liability.
The changes will have a threefold effect on Wyre Forest:
Firstly, Wyre Forest District Council will have to find the extra money to enforce this legislation - money that could be far better spent on local services and money that may have to be found from local tax payers.
Secondly, the owners will have to find money to pay yet more bills on unproductive property. This is not helpful in any way to businesses that are already suffering under poor regional economic conditions. Businesses should be helped, not burdened - after all, businesses provide growth to the economy, local jobs and local finance all at a certain amount of risk to the owners and employees.
Finally, this money will be collected centrally. Effectively, cash is being taken away from the local economy so Gordon Brown can spend it on whatever his latest headline-grabbing initiative may be. It is one thing to tax businesses on income; it is completely different and utterly wrong to tax them on an unproductive asset.
Commenting on the new rules, Mark Garnier said:
"As usual, the Government has a reasonable intention to deal with a problem of commercial property that has been left empty for years. But in its usual cack-handed way, it comes up with legislation that has a series of consequences that are not good locally.
"This is bad for local businesses; bad for local jobs and bad for Wyre Forest. But then again, what else would you expect from Gordon Brown."