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| 25/05/2010 | Government must not ignore stalling retail development warns BCSC |
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| The retail property industry welcomes the legislative programme set out in today’s Queen’s speech, but warns the new coalition Government that work needs to be done to safeguard the benefits of retail-led regeneration in towns and cities.
Edward Cooke, Executive Director, BCSC comments: “We remain supportive of the principle of empowering local decision makers to develop planning solutions appropriate to local needs. Our industry is committed to working with Government to ensure that any amendments to the planning regime are well thought through and do not serve to undermine the future regeneration of our communities. “There is a risk that proposals such as third party rights of appeal and encouraging immediate neighbours to seek recompense from developers may enable unrepresentative groups from preventing, or at least delaying, an otherwise beneficial development that delivers significant investment and enhances the vitality of a local community. “At a time when many retail-led development projects are struggling to bridge the viability gap and plans are having to be revisited, the last thing developers need is additional costs and bureaucracy.” BCSC also reiterates the need for action on business rates to alleviate the cost burden on occupiers - which is stifling the recovery in many areas of retail property. “The retail sector contributes around £6 billion annually towards Treasury's total rate receipts - more than any other sector,” continues Cooke. “In a weak consumer market this cost will affect retailers' expansion plans and consequently their capacity to employ local people. “Increases in occupancy costs, coupled with reduced margins, have affected and will continue to affect an owners' ability to secure a fair rent. Ultimately, falling or stagnant rents will have an impact on the attractiveness of retail property as an asset class, which could lead to less investment in areas desperately in need of regeneration. “We therefore would support calls for a mandatory business vote on all proposals where an element of its funding comes from a Business Rate Supplement (BRS). “We also believe that applying full rates to empty retail property is no more than a tax on failure and would like to see this flawed policy reviewed, and ultimately revoked. At the very least we would like the exemption for properties with a rateable value of less than £18,000 extended for the duration of this Parliament.” Cooke concludes: “We continue to engage with the Government’s sustainability agenda, and strongly support the use of building regulations to deliver energy improvements to commercial buildings. We are particularly keen to see the Government commit further funding to the Zero Carbon Hub to ensure that it is able to extend its remit to non-domestic property as we move towards Government’s targets for zero carbon commercial buildings.” |
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