Property experts in Birmingham are calling for a U-turn on Government changes to business rates.
With just weeks to go to the new regime, property owners and advisers say the new rates will be damaging for business and could undermine regeneration.
From April 1, shops or offices unlet for more than three months will be liable for full business rates. For industrial premises the cut-off is six months.
According to Paul Rabbette, director and head of the rating team at CB Richard Ellis in Birmingham, the proposals couldn't come at a worse time.
He said: "We are in the middle of a global credit crunch and a slowdown in the economy. The abolition of rating relief on empty property is another blow.
"It is obviously in landlords' and developers' interests to ensure their properties are let. The reality is some properties will see a percentage of voids.
"For those developers who build speculatively, rates charges will add further cost and risk. For those in regeneration, where the margins are lower, the risk is even higher. It is conceivable the new policy will threaten regeneration."
The campaign to force the Chancellor to re-think is being led by the British Property Federation, which represents companies in property ownership and investment. Its members include Argent, Hammerson, Miller Developments and Targetfollow, all of whom have interests in Birmingham and the Midlands. However, Mr Rabbette concedes a Uturn is unlikely.
He said: "This is a massive income generator for the Government. It is estimated as soon as the new rules come in the revenue can expect more than £1 million, retrospectively."
