The British Property Federation (BPF) is stepping up its campaign against charging full rates on empty shops, calling on businesses to rally together to explain the effects of the “stealth tax”.

The BPF said the levy has damaged business, killed off regeneration schemes and further harmed the supply of property by encouraging early demolition of old buildings that may have otherwise been partially let.

Shadow communities secretary Eric Pickles said: “I am concerned that, at a time when the property market is so fragile, these tax rises threaten to discourage development and regeneration.”

The BPF plans to build a dossier to prove how disastrous the tax has been and is urging businesses to e-mail info@emptyrates.com with evidence, it said.

BPF director for finance and investment Peter Cosmetatos said: “We need evidence to prove what a disastrous move this has been and that’s why we’ve set up this hotline. We need people to get in touch and tell their story and they can do this in total confidence. We want people to e-mail us so that, with enough concrete examples of the impact of this change, we can campaign more effectively for a workable solution.”

“Nobody could have predicted the credit crunch when the rate relief cut was first set out in the 2007 Budget, but since the cut actually took effect in April, we have been in a dire situation that could be made much worse should the industry continue to be unfairly penalised in this way.”

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