A bad idea in the good times just got worse.

Byline: KEVAN CARRICK

FTER my green predictions last week, I was pleased to see a budget focused on renewables, technology and low carbon Far from pleasing however, was Darling's complete and utter of any intention to scrap reduce empty property rates EPR).

A big issue not just in the North but also across the country, the of any intention to put a on the EPR burden - which businesses to hand over cash the Treasury if they have an property, quite frankly beggars belief.

Introduced by the Government April 1, 2008, the rate is estimated to have collected pounds 30m in first year and pounds 35m in the second the region's economy - a figure which is now around pounds 50m as number of empty properties to grow.

The tax, quite frankly, was a bad during the good times and is definitely a worse idea now.

By not removing it and failing to give it a mention in his the Chancellor has confirmed the Government lack of attention to the many calls from industry and commerce.

The RICS issued an immediate stating its disappoint- ment with its research now showing empty rates to be impacting majorly on our towns and cities.

The argument for removing it altogether is, as far as I can see, quite clear.

I don't know of any landlord in the region holding a property off the market intentionally, which contrasts with the South two or three years ago where this was common practice in order to secure a larger rent.

This has never been the case here, as there is simply no reason for it.

The imposition of EPR charges is hitting small businesses the hardest - those that as a region we have strived so hard to support, are now struggling through a rates minefield when trying to relocate and find new tenants for vacant properties.

The adjustment made earlier in the year to remove the charge for rateable values of up to pounds 15,000 would only help an office of about 300 sq ft and a factory of about 1,200 sq ft - miniscule in the extreme.

What's most worrying is the long-term effect this is now having on the commercial property market.

Developers and investors are understandably put off by the risks and costs involved if commercial space cannot be let quickly enough to avoid the hefty charges.

The simple fact is that the EPR burden is preventing businesses from moving around if they want to expand or contract and developers are being halted from building new space as the risks are too high.

If the Chancellor really means it when he says he wants to increase investment, the first action he should have taken is to remove, or reduce, EPR to show his serious intent.

By not doing so, he confirms my initial thoughts that this is solely a tax-raising effort.

We must now keep up pressure on the Government for action - and fast.

Kevan Carrick is partner in JK Property Consultants LLP and policy spokesman for RICS NorthThe imposition of EPR charges is hitting small businesses the hardest

CAPTION(S):

CHANGE NEEDED The empty property tax needs reforming, says Kevan Carrick.