PM faces party pressure for rate relief

Date: 18th November 2008

Taxation on empty commercial properties is coming increasingly under scrutiny by Labour backbenchers, it has been revealed.

So far, around sixty Labour MPs have signed a motion encouraging prime minister Gordon Brown to reconsider the taxation on unused offices and retail outlets, which was introduced in the last budget.

The policy was initially introduced to prevent developers leaving property empty as they waited for rents to rise, but one senior party figure has called for an end to the taxation.

Labour's chief whip, Nick Brown, told the Northern Echo: "We are in a position where people are pulling buildings down, which is an unintentional but destructive consequence of this, and the way to avert that is to grant relief."

According to the Telegraph, backbenchers are confident that with the chief whip's support, chancellor Alistair Darling will introduce a taxation reprieve at next week's pre-budget announcement.

Speaking to the press outside Downing Street yesterday (November 17th), prime minister Gordon Brown suggested that taxation cuts could be part of the chancellor's speech on Monday (November 24th).