BID’s response to proposed 2017 business rates revaluation
HammersmithLondon has examined the proposed revaluation of business rates, due for implementation in 2017, and while we understand the government’s need to undertake a revaluation it is unfortunate that London is the only region to experience a rise in rateable values.
We have examined specific areas that will be affected within the BID boundary.
Of the BID’s 349 levy-paying businesses:
- 76% will have their Business Rates increased
- 21% will have them increased by 40% or more
- 13% will have their rates remain the same
- 11% will decrease
In The Broadway Centre, with the exception of Tesco which has gone up by 38%, we found that retail units will either stay the same or go down, but under the current proposals, offices within the same development will go up on average by 21%.
Looking at businesses on the corner of Hammersmith Broadway and along Shepherd’s Bush Road, we found that offices were also impacted more than retail with some increasing by as much as 80%, whereas one restaurant would benefit from a 2% decrease. On average, retailers in this area of the town centre will pay an average increase of 40%.
Retailers situated along King Street, stretching from the Broadway to Kings Mall, are set to experience an average increase of 24% whereas some offices will go up by 50%-60%. Shops located in the western end of King Street, from Kings Mall to Hammersmith Town Hall, will either stay the same or go up by an average of 4%.
In Kings Mall, all retailers apart from Primark, Sainsbury’s, Holland and Barrett and Patisserie Valerie, will either stay the same or benefit from a decrease and we found that there would be a substantial increase of between 40% and 60% for all offices in Landmark House.
After analysing this data, we are dissatisfied with what we’ve seen. The new rates list contains inconsistencies which paint an uneven picture of Hammersmith which is obviously not a fair reflection on the commercial state of the town centre. The high-street offer in Hammersmith has been going from strength to strength, but under the revised rates retailers could expect to experience an average rise of 25% which will put added pressure on them to generate sales to pay for this increase.
Hammersmith has been an international business hub for decades, but the revaluation puts this in jeopardy as the office sector would experience a massive increase and if pushed too far, we could witness a mass exodus from Hammersmith. This revaluation could potentially disrupt the economic harmony of Hammersmith town centre. The government should be examining ways in which it can encourage business in London to grow, not hinder it.
HammersmithLondon is urging the government to review this revaluation and take into consideration, whether:
Business rates are a suitable way to tax companies in the 21st century
London should be separated from the national revaluation system
A property tax is still relevant while digital retail continues to grow
If you wish to appeal the proposed new ratings list, please visit: https://www.gov.uk/business-rate-appeals The BID would be happy to discuss the revaluation list further, please contact 0203 336 4626 or email email@example.com