Retailers in Mayfair and Bond Street to be hardest hit by 2017’s business rate review but those in High Street Kensington can cheer a drop
Retailers in Mayfair will be Central London's hardest hit by hikes in the 2017 business rates review, according to analysis from consultancy CBRE.
Mount Street occupants will see their average rateable values increase by 138 per cent while just yards away on Bond Street, businesses are facing increases of up to 100 per cent. Steep rises will also be felt close-by on Marylebone High Street, where rateable values are also set to rise by as much as 100 per cent.
However, not all of Central London retailers are to be negatively affected by the rates review, with businesses in High Street Kensington welcoming a drop in their average rateable values of 25 per cent and Victoria Street seeing a modest average rise of 19 per cent.
The new figures were published at the end of September, marking the most significant change to business rates since 2010. The government has opened a consultation on transitional relief which closes later this month.
“This realises fears of substantial rises in rateable value for many businesses, with Central London the hardest hit,” said Tim Attridge, senior director, rating at CBRE. “We’ve seen nowhere near the falls we had anticipated nationally, and this ultimately means many businesses will continue to pay an inflated level of tax. Added to that, the impact will be intensified given the options put forward for transitional relief.
Retailers in six out of 10 UK cities will see their average rateable values decrease. Cardiff and Southampton will see values decrease by 17 per cent and 20 per cent respectively once the review is fully implemented, while Manchester, like London, will see big increases.
Attridge added: “Rate fall or increase, it’s still vital that businesses are aware of the potential impact on their bottom line, and that they have sufficient funds in place to ensure long-term survival.”
When it comes to industrial properties, Cardiff is among the worst affected by the review, with average values expected to rise by 11 per cent.