Birmingham's council leader, Mike Whitby, will lead a Conservative backlash over empty rates next week as the stealth tax on vacant commercial property begins to damage regeneration and business across the Midlands.

The Tory council leader is set to say that the removal of empty property rate relief is having a detrimental impact upon Birmingham when he attends a British Property Federation (BPF) breakfast meeting with other council leaders next Tuesday.

Mr Whitby's statement comes as Birmingham City Council figures reveal an annual rates bill on council owned empty property of £817,153 - to be paid out of local tax payers' pockets. This is cash that could be used for local projects, such as schools or parks.


Businesses with empty property in the council will be hit for a staggering £22,733,736, according to the city council's official stats.

Mr Whitby said: "Birmingham's large scale regeneration has propelled it on to the global stage but the government's current 'tax now, ask questions later' policy is threatening this growth and suffocating vital new developments."

In a private conversation with the BPF at the Labour Party conference on Tuesday, local government minister, John Healy MP, said that there were no plans to restore rate relief.

He also claimed to have not heard claims made by all 19 of the country's urban regeneration chiefs, who said the tax was leaving towns looking like 'broken teeth' as owners demolished buildings to avoid payment.

BPF Chief Executive, Liz Peace CBE, said: "We need MPs to sign the Commons motion which was laid against this before recess. It is vital that local politicians come forward and stop the damage being done by this ill thought out tax."

(CD/JM)