Tuesday, September 29, 2009

KHOODEELAAR! TOLD YOU SO! That Boris Johnson is clueless on 'business’, as even Westminster City Council statements against Crossrail tax shows

0645 GMT London Wednesday 30 September 2009


http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/6244490/West-End-retailers-face-500m-tax-bombshell.html


West End retailers face £500m 'tax bombshell'
Shops and restaurants in London's West End face a "tax bombshell" of £500m under the imminent revaluation of business rates, Westminster City Council has warned.

By James Hall
Published: 12:01AM BST 30 Sep 2009


London's West End faces an imminent revaluation of business rates Photo: PA The council said that the tax increase could scupper the city's fragile economic recovery at a time when businesses need all the help they can get.

Westminster collects £1.2bn in rates every year, more than the City of London, Birmingham and Manchester combined.

Rates are reassessed every five years, but as the most recent revaluation – details of which will come out later this week – is based on rents in April 2008, when property values were at their pre-recession peak, it will have a disproportionate impact.

Across Westminster the average bill is expected to rise by 38pc – generating an additional £456m for the Treasury. Including the London Mayor's Business Rates Supplement to pay for Crossrail, the total cost to businesses in Westminster will be closer to £500m.

Councillor Brian Connell, cabinet member for economic development at Westminster City Council, said: "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."

No comments: