BUSINESSES in York and North Yorkshire have reacted angrily to to the Government’s announcement it is to scrap rates relief for smaller empty properties from April 1.

One rates expert in York described the move as “a kick in the teeth”.

Ministers plan to generate £400 million by slashing the rates relief threshold on empty commercial buildings, from those with a rateable value under £18,000 to buildings with less than a £2,600 rateable value.

Stuart Hicks, director of rates advisers Dunlop Heywood, of York, warned: “It’s going to hurt everybody, from large operators down to one-man operations.

“A lack of rental income is already a huge burden for businesses, so this is a real kick in the teeth and will undoubtedly send many to the wall.”

He foresaw some desperate owners of small properties demolishing their buildings rather than paying the tax. He said: “If there’s no immediate prospect of renting out their properties then we will see buildings being flattened.”

The new tax on smaller vacant properties puzzled Susie Cawood, head of York and North Yorkshire Chamber of Commerce, representing 800 businesses in the region.

She said: “We need the private sector to lead us out of the recession, but if we get knocked back like this, how is it going to happen? It is not what is needed at this time. We need the economy to get going again. We don’t need to be hit with further taxes.”

Barry Crux, of Barry Crux and Co, commercial property agents in Castlegate, York, described the lowering of the threshold as “a pointless exercise”.

Richard Flanagan, partner at York-based Lawrence Hannah commercial property agents, said: “Just as we were beginning to see green shoots of recovery in these areas locally, with the prospect of developers deciding at last now was the time to consider speculative development, along comes this decision, which is a total dampener.”


Owner’s anger

Jerry Denton, managing director of trade jewellery specialists ORO, which has empty retail and office space in High Street, Boston Spa, said: “As businessmen, we expect to pay tax on profits and capital gains tax, but here they are just taxing us for absolutely no reason or benefit. We are an easy target.

“Don’t they think we want profitable tenants in our properties?

“I have had a property sitting empty for six months, but we are still trying to develop it and work out how to make it profitable for us. An announcement like this comes along and kicks you when you are down.”