Business rate hike could push West End businesses 'to the brink'

Date: 30th September 2009

Businesses operating in London's West End have been warned to brace themselves for a marked increase in business rates.

With many retailers already concerned about the likely impact of the upcoming increase in VAT, Westminster Council has claimed that they could now be hit with a £500 million business rate "bombshell" over the next few months.

It is anticipated that much of the increased taxation revenue will be put into the ongoing Crossrail scheme, which is expected to boost London's economy over the long-run by improving east to west transport links, though smaller businesses may be made to suffer over the more immediate future.

The member for economic development at Westminster City Council, Brian Connell, told the Daily Telegraph: "In areas such as Westminster, businesses will be particularly hard hit.

"My concern is that some could be pushed close to the brink and lay off staff unless the government introduces radical reforms to prevent the system unfairly penalising successful areas."

This warning comes soon after Cushman & Wakefield reported that London's commercial property market is now showing signs of recovery after three years of downturns.