‘Empty rates more important than empty offices’

GOVERNMENT plans to make its empty office spaces available to budding entrepreneurs have been slammed by a Yorkshire property professional.

Alex Munro, head of commercial agency development at property consultancy Knight Frank in Leeds, said the Coalition Government should tackle the burden of empty property rates tax before announcing any new initiatives for the sector.

Doubts have been raised about the validity of the scheme, with some commentators asking whether lease agreements would have to be reached with individual landlords.

It has also been suggested the scheme could put the Government in direct competition with public sector backed efforts to boost innovation.

Mr Munro said: “Opening dilapidated uneconomic government buildings in fringe locations does nothing. Many of these are available at low cost in any event.

“Whilst at first glance this is eye catching and will no doubt attract attention, empty rates tax is a far bigger issue for the property sector.

“The tax has seen buildings demolished to avoid it and, along with the lack of bank debt, has killed speculative development that provides the buildings entrepreneurs want.

“Whilst I welcome any Government initiative to stimulate the economy, the focus has to be the barriers put up by Government itself.”

The Government hopes to offer more than 300 premises at low rates for one year so new companies can establish themselves and small firms can benefit from cheap deals.