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Luxury retailers have been hit hard by rises in the UK’s business rates, the first reassessment since 2010.
The rateable value of their premises — which determines the size of their bill — has been updated, with startling results: Louis Vuitton’s value has gone from £3.9m in 2010 to £8.5m this year, an increase of 118 per cent, and Chanel’s has risen by 135 per cent to £6.6m, according to research for the Financial Times by CVS, business rates consultants.
Business rates themselves show similar steep increases: Burberry’s payment will rise by 197 per cent to £2.8m between 2016/17 and 2021/22, and De Beers’ by 170 per cent, CVS’s figures estimate. Most rates will increase by around 50 per cent in the first year.
These rises are far higher than elsewhere in London. A shop on Regent Street can expect an 87 per cent rise in rates, and an office in the City of London 34 per cent, according to consultants Deloitte. Outside London, rates are expected to fall.
Map designer: Christopher Campbell
Additional research: Hasan Chowdhury