A parliamentary reception was held yesterday evening in response to the growing row over Gordon Brown's tax on empty commercial property where numerous MPs hit out at the devastating effects of the tax.

The event, which saw a House of Commons dining room packed with concerned MPs, was hosted by the Business Centre Association and Labour backbencher Phil Wilson, who replaced Tony Blair as MP for Sedgefield.

The reception saw Wilson urge fellow MPs to sign an Early Day Motion - a Commons petition - calling on the government to re-instate relief for businesses from paying full business rates on empty offices, shops and warehouses.

Support for the motion, placed by Halifax MP, Linda Riordan, has doubled in the last fortnight with over 70 signatures from MPs of all parties.

Gordon Brown cut the relief while chancellor and from this April firms have had to pay full rates after a three month period of grace for retail and office space, and six months for industrial units. Before that, they received 50% and 100% relief respectively, meaning that industrial space has been massively hit.


Conveniently, Brown's own constituency isn’t affected, as the legislation does not apply in Scotland.

The British Property Federation (BPF), which has led the lobbying campaign against the stealth tax, said empty rates were like making the unemployed pay income tax because vacant properties earn no income.

Phil Wilson, MP for Sedgefield, said: "It is fundamentally unfair that firms get taxed on these properties when they're trying to bring new jobs and new investment into these areas. It is something I have pointed out very strongly to the minister and obviously I am keeping up the pressure and I will continue to press this issue with the government."

Tom Stokes, Managing Director of business centre developer Evans Easyspace, said: "We will never be fully let and will always have vacancies, but local authorities and most people in the public sector would say this is a good thing. It allows you to always have space for companies to move into if they wish to change or downsize. We are being penalised for providing a flexible option which is good for the economy and good for small businesses. There are an awful lot of MPs sympathetic to the cause, but I am not sure people in government understand what the real implications are for the economy. Constituency MPs that see the harm being done in their local areas do, but ministers seem to be turning a blind eye to that."

Liz Peace, Chief Executive of the BPF, said: "Properties are empty because we are in a downturn, not because people want them empty. While it is an accusation that has been levelled at the industry in the past, right now it is a ludicrous suggestion that defies common sense. Empty rates makes a mockery of the government’s supposed desire to support business and promote flexible leasing. More MPs are now becoming aware of how this threatens jobs and regeneration, and the longer ministers ignore the issue, the worse it will get."

(CD/JM)