Budget 2012: Government should re-think empty rates, says GVA

ONE of the Midlands’ best-known property figures is calling for measures in today’s Budget to help boost occupier demand.

These include the abolition of rules forcing property owners to pay rates on their buildings even when they are vacant.

Ian Stringer, Birmingham-based senior regional director at GVA, said: “It is vital that the government finds more ways to create occupational demand – particularly in the core offices, retail and industrial sectors where demand is inextricably linked to growth in the economy.

“Given the Office of Budget Responsibility’s bleak forecast on extended austerity measures, the easiest decision for most companies in a property context is to ‘hold station’ or ‘make no decision at all’ – the worst of all scenarios when ‘UK plc’ is trying to ignite and stimulate the economy.”

Stringer’s colleague Stephen Hollowood, a senior director at GVA, has praised the Government’s drive to support infrastructure initiatives.

“We applaud the Government’s drive to progress major infrastructure projects such as HS2. These will, in due course, help to accelerate associated private sector development close by – in Birmingham for example,” he said.

“However we don’t feel the Chancellor has fully considered the importance of providing a stimulus to trigger wider development which is vital to the growth of the economy. Nor has he considered the importance of smaller projects to drive growth.

“We cannot rest on our laurels by solely supporting flagship schemes.”