The Scottish Property Federation (SPF) has welcomed an announcement by John Swinney that the empty property rate relief will remain in place for at least another year.

The so-called “bombsite Britain” tax, which levies full business rates on unoccupied offices, shops and warehouses, has famously led to millions of square feet of property being demolished in England since its introduction two years ago.

It has also harmed small and large businesses looking to save money by downsizing property, often forcing them to cut jobs instead, and has discouraged vital development and regeneration schemes.

Announced as part of a recent debate on next year’s Scottish local government finance order, John Swinney, Cabinet Secretary for Finance and Sustainable Growth,said that rate relief in Scotland – including empty property relief - is already “the most generous in the United Kingdom” and that it will “provide a real boost to business in Scotland.”

SPF director David Melhuish commented: “The removal of EPRR in England has had disastrous consequences and is a real tax on hardship at the worst possible time. John Swinney should be congratulated for taking a more sensible long-term view.

“Removing the relief could have been the final nail in the coffin for struggling businesses seeking to downsize because of the recession and it would also be a policy own goal, for the public sector itself is a major property occupier and landlord of course.

“Charging full rates on vacant properties producing no income would add further risk to developers and investors looking to invest in Scottish property.”