AT a timer of rock-bottom business confidence, rural landlords are facing a grave new financial threat because of recent changes to the rating system on empty commercial premises, says the Country Land and Business Association (CLA).

These landowners now face trying to earn a return on that investment as demand for commercial premises has declined due to the economic down turn

Douglas Chalmers - CLA North

Under the new system, landlords will have to pay business rates on premises which have been empty for three months or more – and there are hundreds of empty buildings in the countryside which fall into this category. Yesterday (November 19) the CLA called on Chancellor Alex Darling to suspend the new regulations on rural properties. Said association president Henry Aubrey-Fletcher:

“It is extremely unfortunate that the changes were introduced without any assessment of the potential impact on the rural economy. As a result it is now impossible for the Chancellor to know what effect they are likely to have. “And with the economy in the state it is, now is not the time to be experimenting with rural landowners’ livelihoods in this way. The changes must be suspended until the economy picks up.CLA members are concerned that they will be left having to pay business rates on buildings with there being no realistic chance of tenants being found in the foreseeable future."

Douglas Chalmers, Director CLA North said: “The timing of this change has come when business confidence is low. Over the last few years many landowners have responded to Government encouragement and have diversified and invested in their buildings to provide work space and to aid rural regeneration.

“These developments have often revitalised rural communities with jobs and wages that have benefited other local businesses. These landowners now face trying to earn a return on that investment as demand for commercial premises has declined due to the economic down turn.

“Now they are being punished further through having to pay business rates on the unlet property. This approach can only delay the eventual recovery of the rural economy. Any landowners will be far more reluctant to provide business opportunities in the future if Government simply adds the risk of financial penalties.”