Tories want rates proposals axed

Jun 21 2012

The Conservatives are to use a Holyrood debate to call on the Scottish Government to scrap proposals which would increase the tax that owners of empty business premises have to pay.

The Unoccupied Properties Bill, introduced earlier this year, will, if passed, reduce the rates discount for some empty commercial properties from 50% to 10%.

The Government hopes the change will encourage owners to bring premises back into use.

The business community has spoken out against the measure, with lobby group CBI Scotland warning last month that the move could prove too much for some businesses to bear.

Tory finance spokesman Gavin Brown said: "The Scottish Government has made a complete mess of this proposal right from the start when they failed to consult.

"Everyone wants to see empty properties brought back onto the market but almost nobody believes this is the way to make that happen. Most properties are empty because there is a lack of demand in the market; simply taxing them more will do nothing to help.

"It will also place a tax burden on the squeezed public sector, as they hold many empty properties.

"The Scottish Government keep saying they want more powers to make Scotland more competitive. However, they seem determined to use the powers they do have to ensure the reverse will be true."

The call for the Government to abandon the plan was also backed by the Scottish Property Federation and Scottish Chambers of Commerce.

David Melhuish, director of the Scottish Property Federation, said: "There is no evidence to suggest that this tax hike will bring buildings back into use. The experience in England is that, instead, it will lead to the demolition of perfectly usable buildings and choke off the development of new business space - particularly for SMEs, who rely on a steady supply of vacant property in which to grow."