R>Over 90% of surveyors in the UK believe that charges placed on shops and offices are significantly detrimental to the recovery of the nation's town centres.

Over half also believe that charges are even a contributory factor in property owners demolishing their premises, according to a new survey from the Royal Institution of Chartered Surveyors (RICS).

When commercial premises, such as a shop or an office, become vacant the owner is not required to pay business rates for three months. For industrials and warehouses the rates holiday is six months. However, after this period, these charges, known as Empty Property Rates (EPR), are applicable at the full rate, leaving many with a tax bill which they have no means of funding.

RICS said that it is worrying that with industry still suffering, over two thirds, some 68%, of respondents claimed that commercial property floor space is currently vacant for periods of over six months, meaning that the problem of unmanageable taxes is widespread at a time when businesses are most stretched.

Business rates collected from ratepayers are initially passed to central government and then redistributed back to local authorities as part of the Local Government Finance Settlement. These funds then contribute towards financing local services.

With the situation continuing to impact so significantly on towns across England and Wales, the knock on effect is also being felt in capital values. Some 75% of respondents believe that the rental value of retail premises will decrease as a direct result of EPR.

RICS said that it would like to see to see changes made in the government's forthcoming Autumn Statement by way of an extended exemption period for commercial property owners. This would mean that should a retail property owner lose their tenant, no charges would be applicable for six, rather than three, months. This would be extended to twelve months for owners of harder to let property, such as offices and industrial units.