Luxury retailers on London’s Bond Street will save a total of £66m on their business rates bills as a result of the Government’s decision to postpone the revaluation for two years to 2017, it has emerged.
According to a new study from the researchers behind the Grimsey Review, which published its review of the high street in September, each retailer on the famous London street will save £575,000 in business rates in the two years from 2015 to 2017.
Research found that if the revaluations were to take place next year as normal, Bond Street retailers, such as Chanel and Burberry, would be facing a 72% increase to valuations.
The research showed Burberry alone is estimated to be saving almost £2m in tax because of the revaluation delay.
The Government decided to delay the revaluation to rates in October last year with the view that it would help more businesses if the revaluation took place in 2015 and it would provide more certainty in the market.
However, the research into Bond Street rents has angered those who believe smaller retailers in other UK locations are paying business rates believed to unfairly high based on 2008’s pre-recession rents.
Retail expert Paul Turner-Mitchell, who helped compiled the Grimsey Review, said: “It seems the principal certainty that this delay delivers is that of excessive business rate bills for struggling businesses and tax breaks for those luxury retailers. Small businesses in the [high street minister Brandon Lewis’] own constituency of Great Yarmouth are in effect going to be subsidising the likes of Emporio Armani and Dolce & Gabbana. It beggars belief.”