Fashion houses face rates bill rise of nearly £100 million
Designers on the capital’s most popular shopping streets are facing a near-£100 million hike in their business rates bills, new research showed today with London Fashion Week just days away.
Handbag giant Mulberry, high-heels maker Christian Louboutin and quirky menswear specialist Paul Smith are among the firms that will be hit by an increase in rates from April.
Data compiled for the Standard by property agent Gerald Eve looked at seven streets dominated by clothing and accessories retailers, including Sloane Street, King’s Road and Albemarle Street.
Companies there collectively pay £235.2 million a year in rates, but that will surge almost 40% to £329.1 million from April as part of the Government’s revaluation of the rateable value of commercial property.
Gerald Eve’s Jerry Schurder said: “Bond Street, Mount Street and Sloane Street are seeing some of the largest rises in the country, and it is the fashion houses that have their flagship stores there that will be among the hardest-hit.”
Helen Brocklebank, the boss of luxury goods association Walpole added: “It’s clear from our London members there are urgent and critical challenges within the current business rate set-up. Walpole believes a thorough review of the system is essential to ensure a fair environment for all our members and the wider luxury sector if we are to continue to lead the world.”
It emerged today that Amazon will see the rateable value of some of its UK properties, including most of its warehouses, cut following the April overhaul. Asos and Boohoo will also benefit.
