The Government is pressing ahead with its tax on empty commercial property, as part of its pre-Budget Review, in defiance of a campaign universally backed by large and small businesses, 125 MPS and Labour’s own chief whip, according to the British Property Federation (BPF).

The Chancellor announced that he would temporarily increase the threshold for empty property rates relief to exempt those with whose property is worth less than £15,000. The BPF believes this will only help those who own very small properties such as a lock-up on an industrial estate or a small office above a shop in a low value area and so the change will not help the majority of properties in London and the South East.

The BPF believes an average-sized industrial property would have a rate-able value of at least £40,000, meaning that many firms across the North East, where Nick Brown, Labour’s chief whip, called for relief, will continue to be stung. Nick Brown called for empty rates relief for industrial areas who have been hit hardest by the change.

The BPF is warning that the ‘bombside Britain’ effect of buildings being demolished by those who cannot pay will only get worse. Therefore it is urging those affected to sign the petition http://petitions.number10.gov.uk/emptythreat/.

Liz Peace, chief executive of the BPF, said: “The Chancellor said that this would help 70% of properties, but buried in the small print is the revelation that this will only give back around £185m of the predicted £1bn hit to business. But this is not retrospective and it is not immediate. The smallest firms will somehow have to struggle on until next April.

“While there are 1.7 million properties liable to pay rates, this could include anything from a single room to a large shop. This change will help only the very smallest property owner. The majority of small firms will continue to be damaged by the Government’s ill-thought out taxation.”

Mick German, director of MPG Properties, an industrial landlord from Thanet, Kent, added: “This is simply not of any benefit to people with larger industrial buildings. Basically it is bad legislation that they have tried to white wash, and it will do no good whatsoever for people like myself with large industrial units. It is certainly not going to encourage me back into purchasing or building. It is just a little bit of action far too late. It is ridiculous and I am flabbergasted at what they have done.”