Furniture suppliers forced to take £40,000 demolition hit

2nd June 2009 | rates | Furniture firms Daro and Breasley Foam are to knock down an old and unused factory rather than pay the controversial empty property rate tax on the site.

They will share the £40,000 bill to demolish the building, co-owned by the two firms and last used in 2005, as in the long run it will prove more cost effective than paying the £16,000 annual rates bill.

The factory, which is in Ilkeston near Derby, is jointly owned by the pension fund of foam converter Breasley Foam and the directors of Daro, the cane and outdoor furniture manufacturer which has its soft furnishings division situated in the area.

Chancellor Alistair Darling changed the rules on empty property rate relief in April 2008 despite widespread criticism from both the retail and supply sectors.