Capital business rates 'impact on firms'

Office design news from Morgan Lovell

Published on 04-04-2011

A report by office agent and global property adviser CB Richard Ellis (CBRE) has highlighted a possible sharp increase in business rates that is set to hit those occupying office space in the capital.

Property prices in London have become more expensive for many firms from April 1st when rates payments rose to 20 per cent, while the CBRE study showed that occupiers have borne the brunt of a hike in costs of approximately 40 per cent since April 2010.

"This hike in rates, with the prospect of further increases over the next few years, may be the tipping point for media companies and professional services firms," Stewart Smith, executive director in CBRE's central London tenant advisory group, warned.

Meanwhile, Chris Fletcher, deputy chief executive and policy director at the Greater Manchester Chamber of Commerce, recently noted that businesses could benefit from a reduction in red tape when a new government initiative is implemented.

Posted by Adrian Norman