Savings made from the government’s changes to business rates bills will save Oxford Street retailers just 1.6 per cent.
According to property consultancy firm Daniel Watney, the change from RPI to CPI, which was announced during the autumn Budget after mounting pressure to make changes, will make little difference for central London stores.
The iconic department store Selfridges, which has the most floor space on Oxford Street, will save £100,000 on a bill of £17.1 million, while Zara’s flagship store will save £10,000 on a £1.3 million bill.
“Ratepayers have been calling for three yearly valuations for some time now so the chancellor’s announcement is welcome, however this will not be deliverable unless the government provides the Valuation Office Agency with the funding necessary to carry out regular and accurate valuations,” Daniel Watney associate partner Alex Izett said.
“This is an organisation that has witnessed year on year budget cuts, over 20 per cent in this year alone.”