Brief
Healey faces business pushback over proposed £1bn London office tax
Chief executives say the plan would target about 9,000 high‑value properties in London and could deter investment.
By Felo News Desk · Published
Chancellor John Healey is being warned by business leaders that a proposal to raise property levies on high‑value London offices could generate about £1 billion for the Treasury but would hit the capital hardest.
What happened
The Treasury is said to be considering a rise in business rates for commercial buildings with a rateable value above £500,000. The change would affect roughly 9,000 properties in London and the South East, according to experts cited by The Standard.
What the reports add
The Standard notes that the proposal would leave the high street, hospitality sector and warehouses largely untouched, focusing the impact on the Square Mile and Canary Wharf. It also links the tax idea to broader fiscal pressures, including higher inflation linked to the conflict between Donald Trump and Iran.
What was said
John Dickie, chief executive of Business LDN, told The Standard, “London competes globally to attract major businesses and corporate headquarters so hiking taxes on large office buildings risks undermining the UK’s ability to attract international investment.” He added that the government should instead deliver on its manifesto commitment to replace the business rates system.
Healey told the BBC, “It’s a tough time. People can see the global economic conflicts, they know the pressure it’s putting on them, they understand it’s putting pressure on the Government.”
How it came about
The proposal follows a series of fiscal challenges for the chancellor, including recent calls to extend fuel‑duty cuts and earlier debates over a mansion‑tax threshold in London, which Felo covered on 2 October. Business groups have also urged Healey to scrap a separate bank tax hike earlier in the month.
Key facts
- Healey is considering raising business rates for commercial buildings over £500,000 in value. (standard.co.uk)
- The change could raise about £1 billion for the Treasury. (standard.co.uk)
- Around 9,000 properties in London and the South East could be affected. (standard.co.uk)
- Business LDN chief John Dickie warned the tax could undermine investment. (standard.co.uk)
- Healey told the BBC the economic climate is putting pressure on the government. (standard.co.uk)
Sources
- [1] standard.co.uk — originally reported as “Bosses warn Chancellor John Healey not to hit London with £1bn 'office tax' rise”
