London's luxury retailers welcome new business rates probe

Members of London’s luxury retail sector on Wednesday welcomed news that MPs will grill communities minister Sajid Javid over crippling rises to business rates.

The companies spoke out after the Communities and Local Government Committee yesterday confirmed that on April 19, Javid will be questioned over new rates changes and the pressure being putting on retailers.

Chris Webster, the managing director of upmarket menswear brand Oliver Sweeney, said the probe would be a way to flag that “rates changes couldn’t have come at a worse time for retailers with physical outlets”.

He added: “Brands and retailers are already seeing significant cost pressures from changing exchange rates following the Brexit vote.”

Jewellery designer Kiki McDonough said the rates hikes meant the company would not be hiring more staff which it would have done otherwise.

Sir Peter Rogers, chairman of New West End Company, said: “Local taxation of businesses are meant to ensure that all businesses pay fair and equitable contributions in order to support vital local government expenditure. The business rates system fails in both cases. It is neither fair nor equitable for businesses, and it fails to provide the funding required by local government, which is under increasing financial pressure.”

He told the Standard: “We believe the government should take this opportunity to review the way in which businesses are taxed to provide the necessary funds for local government services.”