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janet burton
Member - 107 posts
Very difficult topic, but the rules are that Tenants pay rates; if there are no tenants, the owners of a property pay the rates (after 3 or 6 months free), if they can't get tenants. So Peter Mandelson is right - rents will drop as owners try to let out their property to avoid paying the rates. Or they can sell it, or redevelop it to attract tenants. They have that choice - it is their asset to manage, and they are complaining because it is not making as much for them in recession as it was in the boom.
Rates is a tax on the building which goes towards paying for local services. Hands up who wants to pay more council tax to let the businesses get tax relief? After all, we're having to manage in the recession too - everyone's costs are going up more than income.
Certainly there are some hard luck stories - but there are an awful lot of wealthy businesses jumping on the bandwagon in hopes of reducing their tax liability. As for those claiming they will demolish instead of paying rates - the cost of demolition will usually be four or five times the rates bill. So they must be pretty sure it won't be let anytime soon. Who wants empty buildings falling into dangerous disrepair ruining the landscape? I'd rather have an empty lot, and no doubt so would the owners - its easier to sell.
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