London boroughs prepare for £9.5bn business rates hike
Business rates across all the boroughs of London will rise by £9.53bn over the next five years, according to new analysis.
The government has re-evaluated the business rates payable for the first time in seven years, and the new tax rate will come into effect in April next year.
Research by business rates specialists CVS for City PM has found that over the next five years, the 33 London boroughs will be paying £1.907bn extra per year in tax as a result of the re-evaluation.
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The biggest tax hike will be in Islington. The borough will face a tax increase of 27 per cent next year. Canada is also facing a big change, with business rates set to rise by 25 per cent next year.
Mark Rigby, chief executive of business rates specialists CVS, said: "The purpose of the business rates re-evaluation is to try and achieve fairness by ensuring that tax liabilities are based upon up-to-date rental values.
"Businesses in London have just six months to prepare for this astronomical extra burden so it is essential that they consider a thorough check of their new tax assessment as there may well be scope for appeal."