Heart of London Business Alliance (HOLBA) which represents over 500 businesses in the West End has issued an urgent warning over a looming £2 billion increase in business rates expected next April, which could threaten the survival of businesses across the capital. The business association is urging the Government to replace the outdated business rates model with a fairer and smarter solution.
HOLBA’s analysis shows that business rates for central London could rise by an estimated 26% due to:
Rateable values increasing by an estimated 5%–20% [1]
A new Higher Rate Multiplier that could cost London firms an estimated additional £1 billion [2]
Removal of the £110,000 cap on sector reliefs that could add another £700 million in costs [3]
All of this comes despite London already contributing £9 billion annually in business rates – a third of the national total. [4]
Ros Morgan, Chief Executive, Heart of London Business Alliance: “Businesses in the West End and across London are staring down the barrel of a huge tax hike — with no justification or reform. The current business rate system places disproportionate pressure on physical businesses that drive economic activity and footfall. HOLBA is currently working on a solution to help the Government finally fix this broken system and protect our economic future..”
