Online Giant’s Business Rates Set to Soar Amid Pandemic-Driven E-Commerce Surge
- Amazon’s business rates set to rise by £28.75m next year
- Total rateable value of Amazon’s properties in England and Wales to increase by £56.16m (35%) next April
- Delivery station in Longtown Carlisle sees biggest percentage increase at 145%
- Tilbury site’s rateable value up 74%, totaling £12.34m
- 10 large distribution warehouses with rateable value over £5m (up from 1)
- Industrial buildings in England and Wales to see a 27.1% increase, totaling £3.95bn
- Altus Group warns of potential financial collapse for many businesses due to tax hikes
Amazon is set to face a £28.75 million increase in business rates next year, according to real estate advisor Altus Group. The online retail giant may have to pay an additional £100 million in taxes over the next three years, taking into account inflation and before any relief is claimed. Altus Group’s analysis of official government data reveals that Amazon’s total rateable value will rise by £56.16 million (35%) from £160.64 million to £216.80 million in April. The company’s 7,000 sq meter delivery station in Longtown Carlisle saw the largest percentage increase at 145%, rising from £154,000 to £377,500. Its Tilbury site, Amazon’s largest UK property, experienced a 74% increase of £5.26 million, totaling £12.34 million. Altus Group warns that when the revaluation comes into effect next April, Amazon will have ten large distribution warehouses with rateable values over £5 million (up from one currently). This news comes as occupiers of industrial buildings face potential financial collapse due to significant tax hikes amid soaring costs. The real estate adviser notes that more than 550,000 industrial buildings in England and Wales will see their overall rateable value rise by 27.1%, totaling £3.95 billion from £14.57 billion under next year’s revaluation. Robert Hayton, UK president at Altus Group, expressed concern that the one-size-fits-all approach may harm many struggling businesses.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s business rates increase and its impact on the company’s tax payments. It cites a source (Altus Group) and includes relevant details about specific locations and rateable values. However, it could be improved by providing more context on how this increase will affect other businesses in the industry and potential consequences for them.
Noise Level: 4
Noise Justification: The article provides relevant information about Amazon’s potential increase in business rates and its impact on the company and other online retailers. It also includes insights from a real estate advisor, Altus Group, which adds credibility to the report. However, it could benefit from more analysis or context on how this change might affect the overall economy or consumers.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers and industrial property market
Financial Rating Justification: The article discusses the increase in business rates for Amazon, which impacts its financial situation and potentially affects other online retailers and the industrial property market. It also mentions potential financial hardship for smaller businesses due to the changes.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event in the text, but Amazon may face a significant financial impact due to increased business rates.
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