‘NAÏVE’ TAX PLANS WILL ONLY DRIVE INVESTORS AWAY, SAYS BUSINESS COMMUNITY  
TAXING empty properties will only damage inward investment and alienate businesses – without solving the problem of land-banking speculators it is aimed at tackling, business leaders warned last night.

Liverpool City Council announced the plans to scrap tax discounts on empty properties in a bid to swell coffers by £3.6 million a year.

But last night, business leaders attacked the plans as “naïve” and “ridiculous”.

Through private sector lobbying group, Downtown Liverpool in Business (DLIB), they called for an extension to the consultation period so that landlords got a proper chance to offer meaningful feedback.

DLIB Chairman, Frank McKenna, said: “This is a ridiculous idea which won’t solve the problem of speculators and will seriously damage the standing of this city to outside investors.

“On top of that, with Christmas closures at the Town Hall, the consultation period is effectively just four weeks – nowhere near long enough for the council to get constructive feedback on the idea.

“Short of seeing sense and scrapping this naïve idea at the outset, we would urge the council to set a consultation period of at least eight weeks after Christmas so that they get to see the error of their ways.”

Mr McKenna said that speculators would find ways of working around the plans, or factor the extra costs into their calculations when buying property.
Those who would be hit hardest by the measure would therefore be smaller property investors.

The measure could even backfire, with small investors forced to sell land to speculators – who can afford to take a bigger risk on property – rather than own anything which stands empty for even a short period of time.

“What is most baffling is that, if the council is serious about tackling this problem, they already have powers under the Compulsory Purchase Order regulations,” explained Mr McKenna.

“So not only does it not solve the problem, the council already has all the tools it needs to tackle speculators, but doesn’t use them.

“I’m amazed that this has come f rom a council that claims that Liverpool is a business-friendly city in which to invest.

“ If the powers that be think Liverpool struggles to attract inward investment now, then they must surely recognise how this back of a fag packet proposal will further add to those difficulties."

 
     

 
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