High-end retailers in London’s West End face a £45m tax increase due to business rates hikes

  • West End retailers face £45m rates tax increase in April
  • Retailers located in London’s West End will see a significant rise in business rates taxes
  • Business rates bills for high street businesses were supposed to be cut by a third, but only those with a rateable value under £51,000 will benefit
  • Selfridges, Louis Vuitton, Chanel, Burberry and Christian Dior among those affected
  • Luxury retailers paid £1bn in business rates during 2016/17, the year before the revaluation took effect

Retailers in London’s West End are set to experience a £45 million increase in business rates taxes in April, according to a report by real estate advisor Altus Group. The Autumn Budget last year announced that high street businesses would see their bills cut by a third, but this only applied to small value premises selling goods and food with a rateable value of under £51,000. Altus Group stated that 7,995 premises across the West End in all sectors will not be eligible for any help and will face tax rises due to the combination of September’s CPI rate of inflation at 2.4% and the third year of ‘caps’ up to 49% for 2019/20, which continue to bring about large increases in business rates liabilities for larger properties. Selfridges will see its business rates bill rise to £17.4 million in April, an increase of £365,420 compared to last year. Luxury retailers like Louis Vuitton, Chanel, Burberry, and Christian Dior are also affected. Altus Group explained that these West End premises paid £1 billion in business rates during 2016/17, the final year before the revaluation was introduced. Robert Hayton, head of UK business rates at Altus Group, said: ‘Rents paid determine rates and, at the assessment date for the 2017 revaluation, demand for space was strong and record rents were being set resulting in large increases in rates compared with the previous assessment date seven years earlier. A premium is often paid by a small number of luxury retailers to have a presence in the West End, even when it’s loss-making, while many independents are forced to pay high rents to be part of an effective retail clique and can’t support the resulting high rates.’

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the increase in business rates tax for retailers in London’s West End, citing a real estate advisor’s report and specific examples of affected businesses. It also explains the reasons behind the increase (inflation and revaluation). However, it lacks some context on the broader implications or potential effects on the industry.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in business rates tax for London’s West End retailers and its impact on specific companies like Selfridges, Louis Vuitton, Chanel, Burberry, and Christian Dior. However, it lacks a broader analysis or exploration of the consequences of this decision on the overall economy or society. It also does not offer any actionable insights or solutions to the issue.
Financial Relevance: Yes
Financial Markets Impacted: Retailers in London’s West End and their business rates
Financial Rating Justification: The article discusses a significant increase in business taxes for retailers in London’s West End, which can impact their financial performance and potentially affect the overall retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk