Empty Buildings in Town Centres 2023-01-09
2023-01-09
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question arises from a need to regenerate town centres and encourage developers to redevelop empty buildings.
What steps he is taking to encourage developers to redevelop empty buildings in town centres.
Regenerating our town centres is essential to the Government's commitment to level up the country. The Levelling-up and Regeneration Bill includes measures to tackle vacant properties, such as high street rental auctions, and it clarifies compulsory purchase powers. We have also revised the business development and use class rules so that commercial buildings can change easily between uses. Through the town deals programme and future high streets fund, the Government are also investing £3.6 billion to regenerate town centres, which of course includes projects to redevelop empty shops.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The question is prompted by the observation that VAT on new build and demolition is zero, while renovation of empty buildings carries a higher rate. This creates an incentive for greenfield development over brownfield redevelopment.
With zero VAT on new build, demolition and greenfield development would seem to be the smart choice for developers, while empty buildings such as the former Debenhams in Eastbourne town centre, which would carry 20% VAT for renovation, are overlooked and year on year move towards dilapidation. Has any assessment been made of the number of new homes that could be delivered should different VAT regimes be levelled up? And, as there has been a great deal of negative campaigning—[Interruption.] I will come to that point next time.
I thank my hon. Friend for her question; she is a fantastic champion for levelling up in her community. Questions on VAT would be a matter for His Majesty's Treasury, but we are of course committed to reviewing incentives around brownfield development and will announce further details on the scope of that review in due course.
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Assessment & feedback
Number of new homes that could be delivered with adjusted VAT regimes
Questions On Vat Would Be A Matter For His Majesty'S Treasury
Response accuracy