The Welsh government today published a report making recommendations to revamp empty property rates.
Business minister Edwina Hart today published the findings, which include 19 recommendations to “incentivise growth”.
Among the recommendations are increasing empty rate relief to premises with a rateable value below £6,000 for mixed-use properties as well as a grace period from empty rates for new builds.
A limited and targeted scheme of rate relief is also recommended for Wales’ enterprise zones, while the government is also urged to introduce tax increment financing in the principality.
British Property Federation chief executive Liz Peace said: “The report looks at how business rates can be reformed in Wales to support economic growth.
“We believe many of the recommendations support this and are also affordable in the current economic climate.
“An extension of full relief for new development or refurbishment would particularly help smaller and growing businesses, as would an extension of full relief for low rateable-value properties, commonly properties owned or occupied by smaller businesses or located in struggling areas with weak property and occupier markets.”
The 19 recommendations are:
• Silk Commission to consider the case for the devolving of business rates to Wales;
• Welsh government to consider enabling local authorities to retain a proportion of the income they generate from business rates;
• Welsh government to strongly lobby central government to retain the current small business rate relief scheme beyond March, 2013;
• Welsh government to make representations to the UK government to seek a longer period of exemption from empty property rates in assisted areas;
• Welsh government to increase the period of exemption from empty property rates for new development or significant refurbishment of existing property on a speculative basis in all areas of Wales;
• exemption from empty property rates to be introduced for premises with a rateable value not exceeding £6,000 which are part of a composite property (property which comprises both residential and commercial elements);
• government to defer increases in rating assessment arising from property improvements for two years;
• for partially occupied premises, government to extend the period before the empty property rate applies to the unoccupied areas, especially in the case of new occupiers gradually taking up occupation;
• raise awareness of the existing hardship provisions;
• Welsh government to introduce a limited and targeted scheme of rate relief in enterprise zones in Wales;
• Welsh government to promote more clearly its ability to support projects within the assisted areas of Wales beyond the restricted limits available in enterprise zones in the rest of the UK;
• Welsh government to monitor the progress of implementation of tax increment financing in England and Scotland;
• Valuation office to introduce specific guidance to businesses who might be seeking a material change in circumstances reduction in rateable value;
• introduce options to level the playing field between out-of-town developments and city centres in a sustainable way;
• Welsh and UK governments to consult with the charitable and retail sectors to review the current rating provisions for charities and social enterprises;
• local retention of business rates to incentivise local authorities to properly enforce empty property rates regulations;
• Welsh government to make available match funding to encourage the business improvement district approach where business communities commit to invest and develop strategies to improve their town centre commercial offer;
• Welsh European Funding Office to examine additional ways to directly support town centres in the next EU funding round commencing in 2013; and
• Welsh government to establish a Welsh renewable energy relief scheme including provisions for local retention of rates generated by these projects.
nick.whitten@estatesgazette.com
