Business charges lower for Harrods and Selfridges – as Reeves hammers pubs with a painful rise

Rachel Reeves has been accused of handing Harrods and Selfridges ‘outrageous’ business rates tax cuts while local pubs are hammered by increases.

Businesses were left seething by Budget reforms that will see small venues pay an extra £318million in the property tax over the next three years – making a mockery of the Chancellor’s claim to have ushered in a ‘golden era’ for hospitality.

They were further incensed yesterday after it emerged upmarket department stores would see bills go down – with Harrods in London’s Knightsbridge set for a £1.1million drop over the next year.

And on Oxford Street, Selfridges’ bill will fall £622,000, according to the same analysis by tax experts Ryan. 

This is because large properties will pay a lower ‘multiplier’ – part of the equation used to calculate rates bills – from next year. 

UK Hospitality chairman Kate Nicholls said: ‘It’s outrageous that two luxury retail stores are receiving cuts to their business rates running into the millions of pounds, while hard-pressed local pubs, neighbourhood restaurants and coastal hotels are seeing their bills significantly increase.’

Rate expectations: Harrods store in Knightsbridge is set to see its business rates bill drop by £1.1m over the next year

She warned that ‘eye-watering’ hikes for many businesses ‘risk further closures and job losses and need to be urgently addressed’. 

The Chancellor boasted she was introducing ‘permanently lower tax rates for more than 750,000 retail, hospitality and leisure properties’ and hailed ‘the lowest tax rates since 1991’.

But pub chain bosses said the changes actually spell ‘sleepless nights, pay cuts and staff layoffs’. 

In a letter organised by trade group the British Beer and Pub Association, publicans said some venues will see their bills raised by up to £16,952.