According to a recently published report by property agent Knight Frank, businesses located on popular shopping streets in central London, including Oxford Street, Regent Street, and Bond Street, are set to benefit from a significant reduction in their business rates bills. The report reveals that collectively, these retailers will pay approximately £222 million in business rates for the financial year ending in April 2024, representing a substantial 30% decrease from the previous year.

The decrease in business rates is a direct result of the 2023 revaluation of properties, which will come into effect on April 1st. This revaluation is based on rateable values from April 2021. Notably, the study highlights that retailers on Oxford Street will experience the most significant relief, with their rates liability expected to decrease from £151 million to £91 million.

Rob Hargreaves, a partner at Knight Frank, suggests that this reduction in rates could serve as a catalyst for businesses to open new stores or expand their existing presence. Lower business rates offer an opportunity for retailers to reinvest in their businesses and stimulate growth.

This positive development comes as welcome news to retailers in London, who have been burdened with high business rates for an extended period. In response to this issue, the government has announced a £13.6 billion support package over five years. As part of this initiative, London will receive more than £1.4 billion in rates support during the next financial year. Additional measures have also been implemented to provide further assistance, such as extending and increasing relief for the retail, hospitality, and leisure sectors.

In addition to the reduction in business rates, properties across London are expected to witness an average 4% decrease in their rates bills post-revaluation. This comes as a relief to retailers who have been facing mounting financial pressures due to rising costs and evolving consumer behavior.

Overall, the decrease in business rates for stores located on Oxford Street and other central London shopping streets signals a positive development for the retail sector. It presents an opportunity for businesses to invest in their growth and expand their operations. With the government’s support through rates relief measures, retailers in London can look forward to a more favorable business environment in the years to come.

Useful Links:
1. Knight Frank Report
2. Government’s Rates Relief Measures