The new business rates regime which comes into effect on April 1 is a piece of "spiteful legislation", a West Midlands property consultant has warned.

John Truslove, who is based in Red-ditch, believes the new rules are "another nail in the coffin of the UK's industrial sector".

He says they will do nothing to encourage the speculative industrial and commercial development that is vital in encouraging economic development.

He said: "The Government is trying to fix something that is not broken.

"By tinkering with the rating system like this, they have produced a spiteful piece of legislation which helps no one in what is quite clearly a tightening economy."

The Rating (Empty Properties) Act comes into force on April 1.

Its main effect is to reduce the exemption from empty property rates. Currently, most empty business properties receive 100 per cent relief for the first three months of vacancy and 50 per cent thereafter. Vacant industrial and listed buildings enjoy 100 per cent relief at all times.

But from April there will be a three month rate free period for most non-industrial businesses and a six month rate free period for industrial properties - then rates will have to be paid as if the buildings were fully occupied.

Mr Truslove said a 50,000 sq ft factory standing empty could cost its owner £100,000 a year in business rates.

"This is the Government tinkering with market forces, which is not its job. This could create a wholly artificial market."