Businesses could be bankrupt by end of autumn, MP says

Companies could be bankrupt by the end of autumn unless the government reconsiders the removal of empty rates relief, one politician warns.

Labour MP Chris Mullin is leading a revolt calling for a re-think and demanding that local councils are given more discretion over the tax.

Mr Mullin, MP for Sunderland South, said in Tuesday's debate that the "unintended consequences" of the Rating (Empty Properties) Act 2007 put a number of businesses in his constituency out of business.

"There is no reason to suppose that its impact will be confined to Sunderland and indeed, if the British Chambers of Commerce is to be believed, the impact on jobs and business is likely to be widespread.

"The fact that the economy now appears to be in downturn will only make matters worse."

Changes to empty rates relief came in to force on April 1st this year and mean that owners of empty properties face 100 per cent rates bills after six months of vacancy for industrial property and three months for all other commercial property.

In the past 50 per cent relief had been offered, which Mr Mullin believes can be re-introduced in times of economic downturn.

Martin Slowe Property Services are Commercial Property Consultants offering a full range of Commercial Property Services.