Will revalued rates rid Oxford Street of 'eyesore' candy shops?

THE West End’s major shopping streets are set to be given a major boost by changes to the business rates regime coming into effect in April, allowing retailers to gear up for expansion while “eyesore” candy shops are pushed out.

- Rhiannon Curry

The latest revaluation, which comes into effect from April 1, is expected to result in an average reduction of 10% in bills across the country — but it will be much higher for some of central London’s top postcodes.

But as ever, the devil is in the detail and how much an individual retailer benefits depends on a number of factors.

First, the rateable value of a property — which is set at revaluation and based on its overall market value — can go up as well as down. So while research suggests that the average decrease in April will be 10%, the charge on some properties will drop far more dramatically, while others will increase.

For example, retailers on Oxford Street will be among the biggest beneficiaries, with their rates liability set to fall almost 40% from a total of £151 million to £91 million.

But other areas, including shopping centres such as Westfield Stratford, where there has been major regeneration over recent years, are likely to see increases.

That is because the value of the property in those areas has increased since the last revaluation, giving them a higher rateable value than before.