Commons Sense

House of Commons · Ministers' Questions

Empty Buildings in Town Centres

Monday 9 January 2023 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Ministerial commitment to regenerate town centres as part of the level-up agenda.
  • The Levelling-up and Regeneration Bill includes measures to tackle vacant properties and clarify compulsory purchase powers.
  • Questions regarding VAT incentives for brownfield development are under review.

Topics (select to filter)

Questions & Answers

Q1 Caroline Ansell Con
Economy Housing Local Government
Context

The question arises from a need to regenerate town centres and encourage developers to redevelop empty buildings.

Question

What steps he is taking to encourage developers to redevelop empty buildings in town centres.

Answer from Dehenna Davison

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.

Answered
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Q2 Caroline Ansell Con
Taxation Housing
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.

Question

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.

Answer from Dehenna Davison

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.

Partly answered

Not addressed: Number of new homes that could be delivered with adjusted VAT regimes

How: Questions On Vat Would Be A Matter For His Majesty'S Treasury

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