Businesses in London's West End are facing substantial increases in operating costs, primarily driven by rising business rates. The New West End Company reports that 75% of its members consider business rates to be their biggest or one of their biggest challenges.
Since April this year, the higher business rates multiplier has come into effect. For 335 West End stores with a rateable value above £500,000, their combined annual rates liability has jumped from £212m to £274m, an average increase of around £183,000 per property. Even businesses on Oxford Street and Regent Street, whose rateable values have not materially increased, have seen bills rise by approximately 20% due to the expiry of previous reliefs.
These rising costs are reportedly influencing business decisions regarding investment, hiring, and growth within the capital. Dee Corsi, Chief Executive of the New West End Company, states that if operating costs continue to rise, the consequences will be felt beyond London, impacting the more than 350,000 jobs supported by the West End.