Empty business premises cost £1.8m a year

EMPTY businesses in Hyndburn are costing taxpayers an average of more than £1.8m in lost rates each year as part of a national relief scheme.

Over the past five years, almost £40m of potential business rates income has been lost due to empty premises across East Lancashire, according to information obtained by the BBC’s Shared Data Unit.

Figures show Hyndburn has missed out on £9.2m over the period.

No rates have to be paid on empty business units for three months, such as when they close down or move.

The aim of the tax relief is to allow for property investment and give landlords time to find a new occupant.

However, it costs local authorities across England and Wales more than £1bn a year, with some losing up to six per cent of their business rates income.

The system pits councils’ interests - who want stable income - against the business community, experts say.

There are calls for urgent reform to the system in the wake of closures of major high street retailers and businesses migrating from shop premises to operating solely online.

A HM Treasury spokesperson said: “Empty property relief strikes a balance between incentivising property owners to put vacant properties to use, while not penalising those who lose a tenant at short notice.

“Whilst the rate of business rates collection varies between individual authorities, the local government finance system has been designed so that business rates income is redistributed across the country according to the needs of local areas. We will announce further details of the business rates review in due course.”