In last week’s Autumn Statement the Chancellor George Osborne announced all newly built commercial property completed between October of next year and September 2016 will be exempt from empty property rates for 18 months.
It is hoped this move will give a boost to speculative development which is currently stalled due to economic uncertainty and the difficulty in securing finance.
Chancellor George Osborne
The Chancellor also made the welcome announcement that the doubling of Small Business Rate Relief will once again be extended for a further 12 months from April 2013. However, despite heavy criticism, the government will not be reversing the decision to postpone the 2015 revaluation until 2017.
This refusal has been described as an “ill thought out decision” by Tim Beattie of Jones Lang LaSalle.
“The next revaluation would re-distribute the rates burden in line with current economic activity thus easing the pressure on high streets in particular,” Mr Beattie said.
Despite this he cautiously welcomed the moves to promote new commercial development which could provide a boost to growth.
“Subject to the detail of the consultation process and the state aid limits, we could clearly see some speculative schemes being started sooner rather than later,” he said.
“But there will also be a tension between these provisions and the localism agenda enshrined in the Local Government Finance Act 2012.”
“Billing Authorities are expected to take a keen interest in new development in their area after April 1st 2013 because they will benefit from the increased tax take.”
While the failure to bow to pressure and reverse the revaluation delay will come as a disappointment to many, it is hoped the other measures announced by Mr Osborne will stimulate investment and provide a boost to both business and the market.
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