A number of MPs have attacked the empty rates tax, which affects unoccupied commercial property.
Local government minister John Healey came under fire from Labour MPs Eric Illsley, David Crausby and Steven Ladyman who are keen for the tax to be reviewed.
“We are seeing perfectly useable business property being bulldozed because of this £1 billion stealth tax delivered by Gordon Brown,” the shadow minister for local government, Bob Neil told Property Week.
“Ministers seem content to dither at a time when action is needed,” he added.
Owners of commercial property are frustrated at the government’s taxation of empty buildings.
The British Property Federation, British Retail Consortium (BRC) and the Business Centre Association have all said the levy will damage business.
BRC director general, Stephen Robertson said previously: “In the current economic climate government should be alleviating the tax burden on businesses, not making them less competitive.”
New regulations mean that after three months if no tenant has been found, firms must pay full taxation on an empty property.