It’s no secret that the pandemic contributed to the collapse of an already struggling high street, which left stores empty and business rates liabilities often landing in the laps of the Freeholder.
Their solution? Let the premises to anyone who will take the rates liability off their hands.
There has been a noticable surge in US-themed sweet shops on our high streets, most of which are sublet to companies on a licence. The occupier is in theory liable for the rates, but it is difficult to establish the identity of the business owners, many of which are shell companies with no assets.
Following the seizure of around £474,000 worth of illegal & counterfeit goods, Westminster City Council has launched an investigation into the legitimacy of souvenir & American sweet shops trading on Oxford Street.
Councillor Adam Hug believes “these properties are used to avoid business rates bills & possibly commit other offences.”
He went on to say “they are not only an eyesore, they are a threat to the status & value of what is supposed to be the nation’s premier shopping street.
The problem is that the owners of the buildings are turning a blind eye to those who sublet them as it means they are not liable for business rates. This needs to stop & we will be stepping up the pressure on landlords to make it clear they are responsible for Oxford Street being overrun with these kinds of stores.”
Souvenir shops have been notorious for similar accusations in the past, however a major factor is the ridiculous level of business rates which fails to reflect the commercial reality.
Westminster City Council has admitted it is unlikely they will recover the £7.9m in missed business rates payments, owed by the sweet shops on Oxford Street.