The chief executive of the New West End Company, Dee Corsi, has urged Chancellor John Healey to tackle rising business rates in the upcoming Autumn Budget. Corsi said the current rates are unsustainable for high street retailers, who are already facing higher operational costs. She noted that 335 shops in the West End now face a combined rates bill that has jumped from £212 million to £274 million. This means an average increase of £183,000 per property.
Key Details
Corsi stressed that these high rates could harm the West End's retail and hospitality sectors, making it harder to compete globally. She pointed out that 75% of members surveyed by the New West End Company see business rates as a major challenge. The higher business rates multiplier, effective from April 1, has made the situation worse. This change has affected flagship stores like John Lewis and Marks & Spencer, which have publicly called for relief.
Background
Corsi is calling for a freeze on the higher multiplier and a move to a more gradual business rates system. This change would help avoid sudden spikes in costs, which she believes are affecting key business decisions about investment and hiring. The urgency of the situation is highlighted by recent closures, including HMV's flagship store on Oxford Street, which cited rising rent as a major reason.
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Rising business rates in the West End may pressure retail stocks and commercial real estate values in London. Investors could see more volatility in sectors that rely on high street performance, especially retail and hospitality. Keep an eye on the Chancellor's budget announcement regarding proposed changes to business rates. These changes could greatly affect market sentiment and investment decisions.
Based on reporting by: cityam.com