Pictured above: James Watkins, Executive Director, Business Voice West Midlands

Business Voice WM has urged the Government to think again about its bomb shell commercial property tax.

Developers across the country are angry that the measure, introduced by the previous Labour administration, is being extended by the Coalition even though the Conservatives condemned it in opposition.

Some owners have reportedly resorted to knocking down their own properties to avoid the charge.

The Government has insisted that, given the parlous state of the public finances, it cannot afford to act.

And it is even going further.

It is scrapping rates relief for empty properties with a rateable value under £18,000. From April the threshold for exemption will drop to a rateable value of £2,600.

It is reckoned this will pull in an extra £400 million a year.

Now BVWM has written to Communities and Local Government Secretary Eric Pickles pleading with him to consider the long term damage being done to cities.

And, if he still refuses to act, then local councils should use loopholes in the legislation to ease the burden unilaterally.

It maintains ending or reducing void business rates should be a key plank of the Government's bid to kick start local economies.

It has branded the tax "iniquitous".

James Watkins, BVWM executive director, said: "Normally there is some speculative property development to set against the downturn in the economic cycle in the expectation of improved prospects in the future. Such activity has been critical in keeping in place significant local employment and also in helping the general local economy weather these downturns.

"Void business rates have reportedly led to a check on these developments which, in turn, has negatively impacted on growth prospects for a number of local areas. In addition, local businesses who are trying to make ends meet with reduced operations during this difficult economic period are being penalised when, as a result of their initiatives, they are faced with this imposition."

The letter said the tax was unfair and should be removed, or, at the very least, reduced.

And it claims that under the Local Government Finance Act 1988 councils have the discretion to vary the threshold themselves. Similarly, they have leeway in terms of partly occupied properties.

Mr Watkins said: "This surely is the sort of initiative that goes to the heart of the Prime Minister's 'Big Society' proposals.

"The planned introduction of Tax Increment Financing will be of significant benefit to local councils and the wider business community. If councils could act independently to limit the harm being done by void rates then this would free up resources that the construction sector can use to reinvest in local needs.

"However, we understand there is uncertainty in what circumstances these discretionary powers can be used."

The Government, he charged, should clarify the issue and be sympathetic in doing so.

"We appreciate the commitment of the Government to empower local communities - action to address void business rates would be a significant contributory factor to advance the Government's agenda in this area."