The Rating (Empty Properties) Act

The Department is taking forward legislation to give effect to the Government's proposals to modernise empty property relief from business rates, as announced by the Chancellor of the Exchequer in his Budget report of 21 March 2007.

These proposals flow from the conclusions of the Barker Review of Land-Use Planning and the Lyons Inquiry into Local Government, both of which recommended that Government makes better use of fiscal incentives to encourage more efficient use of urban land, in particular by reforming relief from business rates for empty commercial properties.

The reforms will enhance the supply of commercial property, reducing rents and improving access for new and existing firms. The Rating (Empty Properties) Act was introduced into Parliament on 10 May 2007 and published on 11 May 2007. The Bill and Act can be viewed on the parliamentary website at http://www.publications.parliament.uk/pa/pabills/200607/rating_empty_properties.htm [External link]. In line with the Chancellor's announcement the Act increases liability for unoccupied properties to the same level as for occupied properties and awards complete exemptions to empty properties owned by charities and by community amateur sports clubs.

The Government intends to consult over the summer on the detailed aspects of the reforms to be achieved through secondary legislation. These include the replacement of the permanent exemption from rates for empty industrial property with a six month exemption, and the retention of the current three month exemption for all other commercial properties, as announced in the Budget.

The reforms to empty property rates will be brought into force from April 2008, subject to Parliamentary approval.