West End faces additional £45m business rates bill under Government plans

13 January 2025, London: Fresh analysis from New West End Company has found that the Government’s proposed business rates reforms could cost West End businesses an additional £44.5 million a year from 2026.

Under the Government’s plans, properties with a rateable value of more than £500,000 could be subject to a business rates multiplier up to 10p higher than the current levy. While the Government has insisted that the decision to increase business rates will protect the high street, over two thirds (67%) of New West End Company members, including the likes of HMV, Marks & Spencer and H&M, will end up paying millions more each year.

For these businesses, who have a presence in the West End and other city centre locations across the country, the additional tax equates to an almost 20% increase. Leading voices across retail, leisure and hospitality have already expressed strong concerns about what such a significant business rates increase will mean for future growth, investment and jobs as they prepare to absorb an almost 2% rise in National Insurance Contributions in April 2025, of £900 per employee on average.[1]

Dee Corsi, CEO of the New West End Company said: “The Government insists it is targeting online giants but it is flagship high streets, like the West End, that will bear the brunt of the this new business rates bill – actively disincentivising bricks and mortar investments in the long-term.

“This is far from the ‘sustainable funding’ of high streets the Government has promised. Instead, it is another cost for businesses which are significant national employers, anchors for nearby communities and drivers of local and national economic growth. Already faced with a rapidly rising tax bill, it is hard to see how increasing the business rates burden won’t tip the scales towards job losses and store closures.”

“We have welcomed the Government’s commitment to co-designing a new business rates policy change, but to truly create a fairer system and encourage investment, bold and fundamental reform is needed.”