Plans to slash business rate relief on empty properties are expected to be published in a bill tomorrow. Financial Times

Whereas empty commercial property currently qualifies for 100% rate relief for the first three months and 50% thereafter, with warehouses and factories receiving 100% relief at all times, from next April, business rates will be payable after six months for industrial property and after three months for all other types.The measures The meaures, which were recommended by Sir Michael Lyons's local government inquiry and endorsed by Gordon Brown in the Budget, are expected to raise £900m.

Phil Woolas, local government minister, is expected to tell the House of Commons it is 'daft' for the state to subsidise empty properties when commercial rents are so high.

But Caroline Spelman, Conservative local government spokesperson, condemned the cust as 'a stealthy £1bn tax hike' by the chancellor.

She protested that empty-property relief was being reduced 'with no offsetting reduction in business rates elsewhere'.a