Strong opposition predicted to Mayors 2% Crossrail levy

The Crossrail project will receive funding from a 2% levy on business rates, paid by those in buildings that have an assessed value of £50,000 or more.  The new plan was disclosed last week by London Mayor, Boris Johnson.  The new levy will come into force in April and affect around one fifth of business premises in London.

The Mayor said large businesses in London would benefit from “playing their part” in the future investment of London. The rail link will cost £15.9 billion and is due to be completed in 2017.  Its aim is to reduce congestion in the City and create faster commuter times.  Of the £15.9 billion project total, the GLA is to contribute £4.1 billion, which it will raise from this new levy.

Companies which operate in a building with a value of over £1 million would be responsible for up to 33% of the total levy collected, it was estimated. Given that commercial property taxes are already due to rise in April, and London will see higher rises than in any other part of the UK, this levy is highly controversial.

BRC Director General Stephen Robinson said retailers would not recoup the money they would be forced to pay out and that there would be strong opposition to the proposed levy.

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