As reported in the regeneration trade press, Hazel Blears spoke about the Government considering changes to the policy when she was addressing a fringe meeting in Manchester.

Speaking about the empty rates programme, she said that the Government would now “need to look at the cost benefit” of the scheme and keep it “under review”.

Along with other property professionals, Carter Jonas has always believed that the policy was a naïve and blunt instrument from the time it was proposed two years ago to its introduction in April this year.

Even in the best of business conditions, the controversial policy would be seen as an ill thought-out measure and a deterrent to investment and development, but this autumn’s worsening economic conditions have compounded this view.

Investors and developers are not only mothballing commercial developments, but there is an increasing number of reports of developers and landlords taking direct action and demolishing new and older commercial premises rather than pay the levy.

At a time when pension funds are taking a hit from unstable stock markets, to penalise property held by pension funds or individual pension plans is another way that the Government has raided the pensions sector, according to Carter Jonas.

Duncan Quig, head of commercial agency in Peterborough and Cambridge for Carter Jonas, stressed the need for a speedy and radical review.

He said: “Obviously the Secretary of State’s central focus is the impact the charges will have on planned regeneration schemes, but the mainstream commercial property sector is burdened by this taxation now.

“The Government needs to look at this urgently. To come to any other conclusion than the repeal of this tax would be mind-boggling.

“This tax increases property costs, reduces choice and increases delay for occupiers as well as creating an unfair burden on owners, and stagnation in areas where the Government has either pinned its own political hopes on regeneration and re-development, or the country’s economic hopes on growth areas like Peterborough, Cambridge and the surrounding eastern region.”