HC Deb 20 October 2003 vol 411 cc408-9W
Mr. Edward Davey

To ask the Deputy Prime Minister what estimate he has made of the revenue which would be raised by local authorities from charging(a) 100 per cent. council tax rate and (b) 100 per cent. business rate on long-term empty properties. [132448]

Mr. Raynsford

About £320 million per year would be raised by English local authorities if 100 per cent. council tax were charged on all long-term empty domestic property other than those subject to exemptions. This represents an additional £160 million because there is currently a 50 per cent. discount on council tax for long-term empty domestic properties. There are, in addition, some categories of long-term empty domestic property that are exempt from council tax. Figures for the revenue which would be raised if these exemptions were ended are not available.

The Office of the Deputy Prime Minister does not have sufficiently detailed records to be able to calculate what would be raised if long-term empty domestic property were subject to non-domestic rates rather than council tax.

About £1 billion per year in rates revenue in England is currently foregone as a result of reliefs granted on empty non-domestic properties. This comprises 100 per cent. mandatory relief on all non-domestic properties for the first three months for which they are vacant and, after three months: 100 per cent. mandatory relief for certain properties including factories and warehouses, 90 per cent. mandatory relief for charities and 50 per cent. mandatory relief for other properties.