    |
|||
        |
|||
General News
A powerful group of property developers has stepped up its campaign against the Government’s decision to amend rates relief on vacant buildings.
The West Midlands Developers’ Alliance (WMDA), which represents over 30 regional developers, is urging the Government to “seriously review” its policy.
Now the WMDA has joined forces with Birmingham Chamber of Commerce and Industry (BCI) so that the two organisations can work together to promote the best environment for developers to flourish.
They claim that reducing rate relief on vacant premises represents a tax that could make projects unviable, particularly for much-needed quality office space in the West Midlands.
From April 1 2008, shops and offices will not longer be eligible for the current 50% reduction in business rates after three months of becoming empty. They will instead incur full 100% rates, while owners of vacant factories and warehouses the currently attract no charge will have to pay full business rates after six months.
Alan Griffith, the WMDA’s chairman said: “One of our first priorities is to campaign against the Government’s ill-thought through change to rates on vacant buildings. Nearly all the projects under way, whether commercial or industrial, are procured on a speculative basis.
The Chancellor was looking for this tax amendment to develop growth in the market. It will do the opposite.
Our members are extremely perturbed by the amendments to the rates relief, which represent a tax that will need to be passed on to consumers and end-users if speculative developments are to continue. The government needs to seriously review its policy.
BCI chief executive Jerry Blackett added: “We fully support the WMDA. Developers are vital in Birmingham’s ambitions to deliver a world-class built environment and breathtaking city skyline. This is a top priority for businesses across the region.”