Parties unite over business rates relief

THE three political parties on Warrington Borough Council have joined forces to send an urgent message to the Government on empty property rates relief.
A motion urging the Government to scrap business rates on empty commercial properties, at least until the economy recovers, was unanimously supported.
It was moved by two Conservative councillors, Paul Campbell and Paul Kennedy.
Coun Kennedy (pictured below) said he believed Warrington was the first authority in the country to debate the issue and send such a resolution to the Government.
He said: “It is of course for Central Government to decide fiscal policy. All that we can do is to draw our concerns to their attention, and when businesses and residents ask of us, what did you do about this matter, we can say with great pride that this council was the first, I think, in the country to debate the subject and that we sent a clear message to Government, asking them to reinstate the full exemptions at least until such times as there is a sustained economic recovery.”
Coun Kennedy said in 2007, the Government announced reforms to empty property rates relief to give owners of vacant property an incentive to get them back into use.
It was a noble cause – but the decision was taken at a very different economic time to the present.
The changes did away with the 50 per cent exemption for empty shops and offices after three months and the 100 per cent exemption on factories and warehouses after six months.
They placed a very substantial financial burden on businesses, many of which in the current economic climate were likely to have to vacate premises until better times returned.
In some cases, many would have no option but to go into liquidation.
Coun Kennedy used Warrington’s Woolworth’s store, rateable value of £325,000, as an example.
He said: “Woolworths is currently in administration, and as stores close, it is believed that the financial liability of empty rates will be a major factor in the administrators deciding to put the business into liquidation.”
The alternative to liquidation, which was happening in parts of the country, was to demolish properties to avoid paying rates.
This could create a huge problem when the economy picked up and there were insufficient buildings.
When businesses in rented property went into liquidation, the liability fell back on the landlord – and Warrington Borough Council is a major commercial landlord.
Revenue officers in Warrington and elsewhere were rightly concerned by the serious financial impact and consequences of this liability.
Coun Kennedy likened empty rates’ liability to someone losing their job but being expected to continue to pay tax and national insurance as if they were still working.
It was possible that sites such as Omega, where no private sector developer would build speculative commercial buildings during the current economic climate, would end up being used for far less desirable purposes.
*The Government has exempted properties with a rateable value of less than £15,000 for the coming year and the motion welcomed this concession.
Pictured… Warrington’s Woolworth’s store, rateable value £325.000.