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03/11/2008
Mandelson's support of property tax condemned |
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Peter Mandelson's comments that charging property tax on empty buildings is "good news for tenants" have been condemned by the British Property Federation.
Last week, Lord Mandelson said he believed that taxing empty commercial property would provide an incentive to landlords to drop their rental prices, to fill their properties.
Liz Peace, chief executive of the BPF, said that his comments illustrated that Lord Mandelson had a "fundamental" misunderstanding of how business worked.
Ms Peace said: "You can't tax something earning no money and expect that to conjure up tenants when demand is falling through the floor."
She called for an end to empty rates and said a "reality check" was needed.
Bhevin Shah, who runs Dynasty, a fashion wholesaler in Borehamwood, Hertfordshire, said that reinstating rate relief would save his business £35,000 a year, the BPF reports.
The BPF aims to represent the interests of anyone involved in property ownership and investment. Its objective is to raise the profile of the property industry with political stakeholders, the media, and the public. |
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