This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/london-night-life-business-rates-threat-nightclub-closures-bars-shut-koko-dirty-bones-a8143266.html
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
London's nightlife under threat thanks to soaring business rates, says expert | |
(about 5 hours later) | |
Crippling business rates bills are threatening the existence of some of London’s most well-known nightlife venues, new research has revealed. | Crippling business rates bills are threatening the existence of some of London’s most well-known nightlife venues, new research has revealed. |
According to real estate company Colliers International, nightclubs in the capital – already hit by soaring rents and inflation – look increasingly vulnerable to a hike in business rates, after they already went up in April last year. | |
KOKO on Camden High Street saw its rateable value, which refers to the value of a property upon which a tax is calculated, rocket in 2017, meaning that its business rates rose by almost 60 per cent: from £75,482 for the financial year 2016/17 to £118,519 in 2017/18. | |
The rateable value of Camden club UnderSolo, Dirty Bones in Soho and Leicester Square clubs Café De Paris and Cirque Le Soir also increased sharply. | The rateable value of Camden club UnderSolo, Dirty Bones in Soho and Leicester Square clubs Café De Paris and Cirque Le Soir also increased sharply. |
John Webber, who oversees business rates at Colliers, said that this does not indicate that the clubs won’t survive, but it does demonstrate the pressure the industry is under. | John Webber, who oversees business rates at Colliers, said that this does not indicate that the clubs won’t survive, but it does demonstrate the pressure the industry is under. |
Business rates are a tax charged on properties such as shops, offices and pubs. They were raised for the first time in seven years last April. | |
Earlier this week, Kensington Roof Gardens – owned by Sir Richard Branson – said it was closing after struggling to make a profit. | |
The club, which boasts three themed gardens, a running stream and four resident flamingos, was bought by Virgin in 1981 but has decided not to renew its lease agreement. | The club, which boasts three themed gardens, a running stream and four resident flamingos, was bought by Virgin in 1981 but has decided not to renew its lease agreement. |
Colliers said that the club has seen a rise in rateable value from £402,500 in 2010 to £590,000 in 2017. | Colliers said that the club has seen a rise in rateable value from £402,500 in 2010 to £590,000 in 2017. |
In terms of actual rates paid, this means the venue’s rates bill would have been over £86,000 higher this year than last, at £294,410, according Colliers. By the financial year 2021/22, Kensington Roof Gardens would have been paying a rates bill of £328,630 a year. | In terms of actual rates paid, this means the venue’s rates bill would have been over £86,000 higher this year than last, at £294,410, according Colliers. By the financial year 2021/22, Kensington Roof Gardens would have been paying a rates bill of £328,630 a year. |
Mr Webber also said that businesses were coming under pressure as a result of the rise in the national living wage and an increase in inflation. | Mr Webber also said that businesses were coming under pressure as a result of the rise in the national living wage and an increase in inflation. |
“There has been a lot of comment about how pubs and bars across the country are closing because of onerous business rate rises, but it’s interesting that the high-end London leisure scene is being affected too,” he said. | “There has been a lot of comment about how pubs and bars across the country are closing because of onerous business rate rises, but it’s interesting that the high-end London leisure scene is being affected too,” he said. |
Previous version
1
Next version