Government called on to review business rate exemptions for commercial mortgage holders

21 January 2011

Written by Jenny Barrett

The Federation of Small Businesses (FSB) has called on the government to take another look at its plans to scrap business rate exemptions for some empty properties owned by those with commercial mortgages.

In 2009, a policy was introduced which meant that landlords were no longer made to pay the charges for unoccupied real estate with a rateable value of less than £18,000.

However, this threshold is being lowered to £2,600 in April this year, a change the FSB has warned could drive firms into insolvency.

"We urge the government to look closely at this matter and, at the very least, allow the business to claim Small Business Rate Relief," local government policy chairman for the organisation Roger Culcheth commented.

Chief executive of the British Property Federation Liz Pearce recently said the decision to lower the threshold for the exemption was "damaging and retrograde".

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