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Empty offices need 'rate relief'

Categories: Economic News

19 August 2008

The government has today been called upon to reapply business rate relief for empty properties.

Andrew Teacher, head of media for the British Property Federation (BPF), made the claim after recent reports stated there is currently 30 million sq ft of empty London office space, with some unoccupied developments being demolished due to tax rates.

Mr Teacher said the government must "gradually reapply business rate relief for empty property", before adding the tax is "causing further harm to both the property industry and the wider economy".

He added: "Charging poor business rates on empty property will only serve to reduce the supply of property and cause further trauma to businesses when the government should be giving them a helping hand."

The statement comes shortly after the BPF claimed tax on empty commercial property is resulting in office blocks being knocked down.

A spokesperson for the federation told the Times the rate could "discourage companies from development, which could stop regeneration".

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