The West End risks losing its position as a premier global shopping and hospitality destination without immediate action on tax cuts and increased policing, according to a warning issued to Andy Burnham.
The New West End Company (NWEC), representing 800 businesses in the district, has called on the government to reduce business rates and fund a new retail crime agency to stimulate growth in the area. The group suggests the West End's substantial tax contributions drive economic growth across the UK, but warns of potential investment loss to rival cultural hubs like Paris, Tokyo, and New York.
Dee Corsi, NWEC chief executive, stated that the West End is an "engine for economic growth in London but drives economic output for every part of the UK." NWEC reports that the West End pays approximately £17bn in tax each year, contributing eight per cent of the UK’s business rates bill and three per cent of the country’s total economic output.
West End businesses attribute their economic contribution being constrained by rising business rates, which saw their total bill jump from £212m to £274m in April. NWEC also warned Andy Burnham about the potential impact of a 'tourist tax', urging that any such levy be proportionate and its proceeds reinvested locally.
The industry body has called for a new national taskforce to address retail crime and "organised begging and rough sleeping networks." NWEC has committed £23m to security operations in the district over the next five years and provided nearly 80,000 hours of private security last year.
A government spokesperson stated that they want businesses and communities to thrive, noting that over 750,000 retail, hospitality, and leisure properties already benefit from lower business rates multipliers. They added that decisions on tax are for the Chancellor to announce at fiscal events.