According to real estate advisor, Altus Group, the Oxford Street store alone will pay £41.04m in business rates over the four years of the business rates cycle until the next revaluation in 2021. This is an increase of £14.82m compared with 2016/17 tax levels given the change in rateable value.
For the current year of 2018/19, the flagship Oxford Street store saw its business rates bill rise to £10.21m up £3.65m from £6.56m in 2016/17, the last year before the revaluation came into effect. The John Lewis flagship Oxford Street store in London has the third highest rates bill for a store only behind the London stores of Harrods and Selfridges.
Altus Group warns that without intervention by the Chancellor, the retail sector in England will face a £194.22m increase in business rates from next April if the headline rate of inflation remains the same in September.
Robert Hayton, head of UK business rates at Altus Group, said: “With our high streets engulfed in crisis and brexit uncertainty hurting manufacturers and the services industries, the Chancellor should be bold within his Autumn Budget later in the year through an unprecedented stimulus by freezing rate rises.”