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'Don't attack small businesses'

7:00am Monday 18th June 2007

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MP Anne Main says a new bill could hit small businesses in St Albans.

Speaking in a debate on the Rating (Empty Properties) Bill, which seeks to apply business rates to properties which lie empty, St Albans MP Mrs Main drew attention to the possible ramifications for small businesses, who may not be able to afford to pay the rates.

Speaking in Parliament, she said: "This bill may lead to a perverse consequence. Smaller businesses will be disproportionately affected, given that they cannot afford to pay extra taxes or rents, whereas larger businesses can afford to play a waiting game.

"Tesco in my constituency can afford to buy up smaller businesses and keep them waiting while it gets a land bank together. A smaller business would be forced to do something somewhat more quickly, with this extra burden."

Afterwards Anne added: "Nobody wants to see empty commercial properties littering the high street, however, I feel that the Government must examine this proposal extremely carefully or we run the risk of disadvantaging small businesses at the expense of big business.

"In an area like St Albans, that could have the perverse consequence of small businesses struggling to survive, being penalised."


Your Say YourSt Albans & Harpenden Review

Cllr Allan Witherick (LibDem), St Albans (Batchwood and Marshalwick South) says...
9:50am Wed 20 Jun 07

Whilst I agree with the sentiment, small businesses would not be able to keep premises empty with this tax change, what makes people think they were trying to do this in the first place?
If a small business can afford to keep a place empty they can't be that small! More often the issue is finding new tenants...
However, as the Tesco's in St Albans shows it isn't just commercial properties, but residential as well.
Surely the simple answer is to tax each company based on the number of properties it is keeping empty on a sliding scale.
This would discourage large companies from having multiple units unused.

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