The British Retail Consortium (BRC) has called the UK government's consultation on its proposed tax reform bill a 'sham.' It said that 'Gordon Brown is desperately trying to portray his government as business friendly', but at the same time it 'continues to ignore representations from a range of business groups over plans that will pile nearly a billion pounds of costs onto owners and occupiers of shops, offices and factories.'

The British Retail Consortium (BRC) has called the UK government's consultation on its proposed tax reform bill a 'sham.' It said that 'Gordon Brown is desperately trying to portray his government as business friendly', but at the same time it 'continues to ignore representations from a range of business groups over plans that will pile nearly a billion pounds of costs onto owners and occupiers of shops, offices and factories.'

The government launched on Monday its consultation paper on the detailed aspects of its tax reforms, and said the move is aimed at bringing vacant properties back into use by reducing the tax relief for vacant commercial buildings. The consultation period runs until 1 October and seeks views on the proposal, which is expected to come into force by April 2008. The new bill, forecast to raise some £1 bn, will curb tax relief for vacant business buildings and introduce an allowance aimed at supporting the renovation of empty premises.

At the moment, owners of disused shops or offices pay no tax for the first three months the building is left standing empty and 50% in following months whilst warehouses and factories constitute an exception as they receive 100% relief at all times. Under the new rules there will still be no charge for the first three months a property is empty. However, after that time full rates must be paid even if a tenant has not been found. For factories and warehouses 100% relief will end after six months.

The BRC stresses that properties are empty because they are not wanted at that time or place and new tax burdens will not change that. 'Despite claims to be business friendly, representations that the government fundamentally misunderstands the mechanics of the property market have been ignored. A consultation confined to minor matters of implementation and closed on the fundamental principle of the tax is a sham. No one gains by keeping property empty. It's unoccupied because there isn't the demand for it at that time and place,' BRC director General Kevin Hawkins said.