According to a report by property agent Knight Frank, retailers on popular shopping streets in central London, such as Oxford Street and Regent Street, are set to see a significant decrease in their business rates bills. The impending revaluation of property taxes is expected to result in a £96 million reduction in business rates for these retailers in the financial year leading up to April 2024. This represents a 30% decrease compared to the previous year.
The study highlights that retailers on Oxford Street will benefit the most, with their rates liability predicted to decrease from £151 million to £91 million. This reduction in business rates is seen as a positive development for businesses on central London shopping streets, as it could serve as a catalyst for new stores to open and existing brands to expand their presence. This comes at a time when the retail industry has faced significant challenges.
The decrease in business rates is a result of the 2023 business rates revaluation, which will come into effect on 1 April and is based on rateable values from April 2021. London properties, on average, will experience a 4% decrease in their business rates bills following the new valuations. Additionally, a £13.6 billion government support package over the next five years will further contribute to the reduction in business rates. In the upcoming financial year, the capital city is set to receive over £1.4 billion in rates support, thanks to measures announced in the autumn statement, including extended and increased relief for the retail, hospitality, and leisure sectors.
Overall, the news of reduced business rates for retailers on central London shopping streets is welcomed by the industry. It is anticipated that this decrease will create opportunities for new stores to enter the market and for existing brands to expand their presence in the city. With lower business rates, retailers will have more funds to allocate towards improving their offerings and providing an enhanced shopping experience for consumers.
Useful links:
1. Introduction to Business Rates – UK Government
2. 2023 Business Rates Review: Enhanced Support for Retail and Hospitality – Knight Frank
