empty premises business rates relief, commonly known as EPBRR, is a system put in place by the government to provide relief on business rates for properties that are standing empty. The intention behind this relief is to encourage property owners to bring back empty spaces into use, thus preventing urban blight and revitalizing the business landscape. However, the concept of EPBRR is not without its controversies and complexities. In this article, we will delve deeper into the topic of empty premises business rates relief and explore its impact on businesses and the economy.
EPBRR was introduced as part of the Local Government Finance Act in 1988, allowing local councils in England and Wales to grant relief on business rates for empty properties. The relief can range from 50% to 100% and is intended to provide some financial support to property owners during periods of vacancy. This is especially important for businesses that may be struggling or choosing to relocate, as the burden of paying full business rates on an empty property can be prohibitive.
One of the key goals of EPBRR is to incentivize property owners to actively seek tenants for empty premises. By providing relief on business rates, the hope is that property owners will be more inclined to invest in their properties, maintain them adequately, and actively market them to potential tenants. This, in turn, can help drive economic growth by increasing the occupancy rate of commercial properties and stimulating business activity in local areas.
However, critics argue that EPBRR may have unintended consequences that could potentially harm businesses and the economy. One of the main criticisms is that the relief may incentivize property owners to keep properties vacant intentionally in order to benefit from the financial relief. This practice, known as “rate avoidance,” can lead to a shortage of available commercial space in high-demand areas, driving up rents and ultimately stifling business growth.
Another concern is that EPBRR may not always achieve its intended purpose of revitalizing vacant properties. Some property owners may simply pocket the relief without making any efforts to actively market or improve their properties. This can result in a proliferation of rundown or neglected buildings that detract from the overall appeal of a neighborhood and hinder local economic development efforts.
Furthermore, the current system of EPBRR may disproportionately benefit larger property owners and developers at the expense of smaller businesses. Critics argue that the relief provided on empty premises should be better targeted to support small and independent businesses that may be struggling to compete with larger corporations. By focusing the relief on properties with smaller rateable values or providing additional incentives for businesses that create jobs or support local communities, EPBRR could be more effective in promoting inclusive economic growth.
In response to these concerns, some local councils and policymakers have proposed reforms to the current system of EPBRR. For example, there have been calls to introduce time limits on the relief, so that property owners are incentivized to bring vacant properties back into use within a certain timeframe. Additionally, some advocates have suggested linking the relief to specific conditions or requirements, such as requiring property owners to actively market their properties or make improvements to qualify for the relief.
Ultimately, finding the right balance between providing relief for empty premises and encouraging active property management is crucial for the success of EPBRR. While the relief can be a valuable tool for supporting businesses during times of vacancy, it is important to ensure that it is not being exploited or misused at the expense of local economic development. By implementing targeted reforms and promoting responsible property ownership, EPBRR has the potential to be a positive force for revitalizing communities and fostering sustainable business growth.