Empty Property Rates Campaign Triggers Debate

The Government is under pressure to accelerate Empty Property Rates (EPR) reform after a campaign by industry trade body, the Business Centre Association (BCA), triggered a debate in the House of Commons.

“Business centres have been instrumental in helping to attract inward investment, small businesses and jobs to areas where they are located,” comments Alan Pepper, chief executive of Avanta Managed Offices, which operates 18 business centres across the UK, “However centres have been forced to operate under a heavy financial burden since Government slashed the EPR threshold.

“New business centres typically take around two years to reach optimum occupancy and being hit with punishing taxes during the period when occupancy is low has made a number of operators consider the proposition as unviable with a resulting detrimental effect on available workspace for small businesses.

Responding to the debate, the BCA’s executive director Jennifer Brooke said, “Business centres are playing a vital role in the UK economy by supporting more than 40,000 SMEs and start ups. The benefits of raising the EPR threshold would far outweigh the costs, as it would lead to job creation, incentivise investment and stimulate growth which has come to a standstill since the threshold was reduced.  If the Government does not act quickly, the BCA predicts that there will be a critical shortage of flexible office space within the next two years.”

The BCA has launched a petition to have EPR further debated in Parliament http://epetitions.direct.gov.uk/petitions/318  It will also be holding a reception at the House of Commons on Wednesday 8th February 2012 to highlight Empty Property Rate isuses.