Writing as part of our Budget opinion series, Dee Corsi of the New West End Company outlines how the Government can get behind the “nation’s high street” on 26 November.
This week, the West End had the privilege of kickstarting the festive season in the capital when Oxford Street’s iconic stars were illuminated for the first time. As they do every year, the twinkle of lights signify that Christmas has begun – and that the West End’s most important trading period is here.
For many of the 600 West End businesses New West End Company represents, the success of the next eight weeks will determine the success of the year. An iconic destination year-round, the West End becomes truly magical at Christmastime, with businesses in the district pulling out all the stops to deliver exceptional festive experiences.
The West End’s enduring appeal, particularly at this time of year, is reflected in our annual festive forecast. Released earlier this month, it predicts a resilient festive trading period in the West End, against a backdrop of Budget uncertainty.
But we cannot ignore that, after a period of sustained growth, this is our most muted forecast since 2021 – with predicted year-on-year growth of 1.3%. Domestic consumers remain cautious, and international visitor spending continues to track below 2019. This shouldn’t be the case for the UK’s best known flagship high street destination, which has all the right ingredients to succeed.
The district continues to attract world-leading brands, experiences, and investment. Recent openings have included the likes of IKEA, the Jamie Oliver Cookery School in John Lewis, and new flagships for Rolex, Space NK and Michael Kors. Department store developments continue at pace, helping to meet the growing demand for Grade A office provision in the West End. And all this activity will be complemented by transformational future public realm schemes, on Oxford Street and Regent Street, delivered in partnership with business and local government.
Despite this, growth is stalling — a worrying bellwether for a Government which has made the health of UK high streets a measure of success.
Looking ahead, retail, leisure and hospitality businesses in the West End have been clear that we need bold, targeted growth measures in the upcoming Budget. These businesses are drivers of economic growth, creators of jobs, and anchors for communities – but they cannot bear the burden of any additional costs.
Current proposals for business rates reform are a particular concern.
That’s because the Government’s proposed new ‘super tax’ – a higher rate multiplier applicable to businesses with a rateable value of over £500,000 – would disproportionately affect the West End. In fact, businesses in the West End are ten times more likely to be hit with the ‘super tax’ than anywhere else in the country. Should it be implemented, it would result in a collective £45 million increase in business rates for our members, jeopardising nearly 4,000 jobs and putting 450 trading units at risk of closure.
It has now also been five years since the UK lost parity with other international shopping locations, when it lost tax-free shopping. And, whilst West End footfall has largely recovered, spending has not kept pace – a reality laid bare in our festive forecast.
We know that the Government is looking for credible, evidence-based policies that deliver growth, jobs and visible economic impact. That’s why we are working with partners from across the country to design a modern scheme for international visitors, that is fiscally sound, easy to use, transparent, and designed to support jobs and investment across the whole visitor economy. This isn’t about “bringing it back” but “building it better”. We are hopeful that the Government will work with industry to ensure that Britain remains a world-leading destination for retail, culture and tourism.
Looking ahead to 26 November, we are calling for the Chancellor to exempt all retail, leisure and hospitality businesses from a new ‘super tax’ which would put them at risk. The West End alone generates 3% of the UK’s economic output. We can ill afford to undercut its success.