A third of London businesses have said they will be paying more towards new business rates than rent next year, according to the London Chamber of Commerce and Industry (LCCI).
More than 40 per cent of London firms were concerned about the new rate valuation, which will come into effect on 1 April, according to an LCCI survey of more than 500 businesses.
London companies were more likely to disagree than agree that the new business rate valuation they have received is fair.
It has been estimated that London boroughs will be paying £9.53bn in extra tax over the next five years due to the changes, which were re-evaluated in October for the first time in seven years. In the Square Mile, companies are bracing for a £2bn businesses rate hike.
"The business rates revaluation has been laboured and complicated from start to finish. We saw businesses concerned about the revaluations even before they were announced in October," said Colin Stanbridge, chief executive of LCCI.
We said after the announcement that the revaluation of apparent 40 per cent plus hikes were a huge blow to London, with our primary concern being that businesses may decide to hold back on training, recruiting or investing in other areas. These concerns are borne out in this survey, with only 18 per cent of businesses saying that the revaluation is fair.