Labour calls for buildings rate relief

The Labour party is placing increasing pressure on Prime Minister Gordon Brown to repeal taxes on disused commercial buildings.

Introduced in the Budget earlier this year, corporate rates on empty premises have proved unpopular with the business community, and now backbenchers are calling for an end to the tax.

It has been reported that about 60 Labour MPs have signed a motion to scrap the tax, which was initially brought in to discourage developers from leaving properties empty until rental rates increased.

Nick Brown, the party's chief whip, told the Northern Echo: "We are in a position where people are pulling buildings down, which is an unintentional but destructive consequence of this."

He added that the only way to stop this from happening would be to introduce rate relief on disused commercial buildings.

Last week, the Federation of Small Businesses called for a £1 billion rescue package to form part of the Chancellor's coming Pre-Budget statement.