High Street Crisis and Brexit Uncertainty Loom Over Retail Sector

  • John Lewis Oxford Street flagship’s business rates tax increases by 57%
  • Oxford Street store to pay £41.04m in business rates over four years
  • Third highest rates bill for a store, only behind Harrods and Selfridges
  • Retail sector faces £194.22m increase without Chancellor intervention

The John Lewis flagship store on Oxford Street, London is facing a significant increase in business rates tax, rising from £12.68m to £19.91m, up 57% compared to last year’s revaluation. According to real estate advisor Altus Group, the Oxford Street store will pay £41.04m in business rates over the four years of the business rates cycle until the next revaluation in 2021. This is an increase of £14.82m compared with 2016/17 tax levels due to the change in rateable value. For the current year of 2018/19, the flagship Oxford Street store’s business rates bill rose to £10.21m, up £3.65m from £6.56m in 2016/17, the last year before the revaluation came into effect. The John Lewis flagship Oxford Street store now has the third-highest rates bill for a store, only behind the London stores of Harrods and Selfridges. Altus Group warns that without intervention by the Chancellor, the retail sector in England will face a £194.22m increase in business rates from next April if the headline rate of inflation remains the same in September. Robert Hayton, head of UK business rates at Altus Group, said: ‘With our high streets engulfed in crisis and Brexit uncertainty hurting manufacturers and service industries, the Chancellor should be bold within his Autumn Budget later in the year through an unprecedented stimulus by freezing rate rises.’

Factuality Level: 10
Factuality Justification: The article provides accurate information about the increase in business rates for John Lewis’ Oxford Street store and compares it to other stores in London. It also includes a quote from an expert in the field discussing the potential impact on the retail sector.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in business rates for John Lewis’ Oxford Street store and warns of potential consequences for the retail sector if no intervention is taken. However, it lacks analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: John Lewis and other retail stores in England
Financial Rating Justification: The article discusses changes in business rates for John Lewis’ flagship store, which impacts the company’s financial situation and potentially affects other retailers in England as well.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk