Segro chief: Removal of rate relief 'stupid'

Ian Coull, the chief executive of Segro, has criticised the removal of rate relief on empty commercial properties as his company revealed a first-half loss of £315 million.

He said: "It was never a sensible idea but it was a particularly stupid tax in the current economic circumstances," the Telegraph reports.

The change was made on April 1st and means businesses no longer receive full rate relief on empty retail and office property for the first three months and 50 per cent thereafter.

"I feel very strongly about it. It is an unfair tax," Mr Coull stated.

He added that the move has penalised regeneration opportunities and means more buildings are being demolished.

Segro expects to pay £8 million in empty property tax for the financial year and has demolished 450,000 square feet (sq ft) of space in the first half.

During the whole of the previous year it demolished 400,000 sq ft.
Segro has property assets of £5.1 billion, with an annual rent roll of around £290 million.

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