Businesses 'want property tax cuts'

Date: 27th August 2008

If the government hopes to help businesses survive the economic slowdown, it needs to look at the taxes it levies on commercial property, one pressure group has said.

In its submission to the government ahead of the next budget, the British Retail Consortium (BRC) urged the chancellor to help small firms by acting to reduce commercial property costs.

The BRC explained that this could be achieved by pledging to stop any extension of local tax raising powers, such as Business Rate Supplements (BRS), until it has become clearer what the long-term results of these policies will be.

In addition, the BRC urged the government to consider reintroducing empty property relief, and to undertake an urgent review of the tax treatment of unfair lease conditions where retail tenants have to pay large exit fees when surrendering leases early.

"Retailers are being hit by a double-whammy of a deepening economic slowdown and a range of higher property costs," explained Stephen Robertson, the BRC's director general.

"The government should alleviate the increase in retail property costs by bringing back empty property rate relief and allowing retailers tax relief on the large exit fees they pay when surrendering leases early."

Recently, the Telegraph reported that some small business owners were considering switching to work from home in a bid to reduce costs.