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Rating (Empty Properties) Bill

It is right that supply of property fluctuates as it reflects and responds to demand. That is precisely the efficient operation of the property market that we want. Empty property relief was introduced during the 1980s, when the economic circumstances and therefore the demand for property and the level of economic activity were really very different, so we are returning to the issue again. We judge now to be the right time—in totally different economic circumstances, I am happy to say—to introduce the sort of reforms proposed in the Bill. Rather than properly aligning or encouraging investment and expansion of new firms, high rents dissuade businesses from starting up, act as a limit on growth and provide a barrier and disincentive to those who might otherwise be looking to invest in the UK from overseas. We therefore need our stock of commercial property to be used efficiently, and in doing so we need to increase the supply and reduce costs to businesses. That is precisely the purpose of the Bill.