Since 2009, Birmingham City Council has paid £3.5 million on rates and council tax for vacant commercial properties. The council owns £5 billion worth of commercial properties, which include Perry Barr greyhound track, as well as stakes in the NEC and Birmingham Airport.
In 2009 the council paid £1.3 million in tax and rates for empty buildings, this decreased slightly in 2010 when they paid £1.1 million, but this year already the council has paid £1.2 million for the vacant commercial properties. With councils implementing spending cuts and Birmingham City Council paying so much for these empty properties, it does raise the question as to why they have not sold the unoccupied properties to allow the money to be used elsewhere?
A spokesman for Birmingham City Council said, “The council uses the money to support its revenue spend and thereby keep its council tax down,” but wouldn’t selling some of the unused commercial properties keep council tax rates low, by freeing up some of the millions of pounds been wasted on rates and tax?
Birmingham City Council argued that, “Its commercial property portfolio generates a total income stream of around £25 million and it was in the best interests of the taxpayer to hold on to them.” They also went onto say, “The council’s strategy and objective is to retain a portfolio that produces a reliable income stream, contributing to the council’s challenging revenue budget and also providing long-term sustainable growth of the asset value.”
Eric Pickles, Communities Secretary asked councils to publish what land and commercial property they own so they can review their assets and try to find new ways to use them. Mr Pickles also wanted the list of commercial properties to be made public to enable the community to put forward any ideas and opportunities they have that could turn these vacant properties into flourishing businesses.
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