smallbusiness.co.uk: Helping your business think big

Large companies are joining the calls of SMEs to scrap empty property rates, in a letter being sent to the prime minister this week.
 
Some of the household names adding their voices to the campaign led by the British Property Federation (BPF) to reapply rate relief on empty buildings include British Airways, Tesco, McDonalds and Nokia.

Bhavin Shah, owner of small fashion retailer Dynasty UK, is currently only using one-third of the property on which he initially took out a 15-year lease.

Shah says: ‘We feel it is grossly unfair that the banks get bailed out when in financial difficulty for making mistakes in their business plans and the same banks are not willing to help us now when we need help as small companies to pull through these times.

‘To us, the reinstatement of empty property rate relief will mean we can save at least £35,000 per annum. Which can be put to better use in the growth of our company and eventually put us back on track for creating an international business.’

Liz Peace, BPF chief executive, likens the rates to making the unemployed pay income tax. She says: ‘Taxing hardship and business failure is a ludicrous way to help people through the hard times. Brown must act now to undo this mess.’
 
Rate relief was abolished this April and has been dubbed by many as the ‘bombsite Britain’ tax, as it has resulted in some landlords preferring to demolish their buildings rather than pay costs on empty property.
 

There are currently no comments on this article