Against a challenging economic backdrop, including persistent inflation, slow growth and ongoing pressure on business costs, the Chancellor faced the task of reassuring markets while avoiding decisions that could further weaken confidence across the economy.

For many, these pressures are not abstract. They are part of the day-to-day reality of running businesses, supporting staff and making decisions about investment and growth. The West End’s business community continues to shoulder a significant share of this challenge.

From global retail, hospitality and leisure brands to offices, cultural venues and property investors, our district plays a central role in supporting jobs and driving economic activity. Together, our businesses, anchored by Oxford Street, Bond Street and Regent Street, form one of the most vibrant and renowned flagship destinations in the country, contributing billions in tax revenues and supporting hundreds of thousands of jobs.

While full detail will take time to assess, several measures announced this week and in today’s Budget will be of particular interest to our members:

• Confirmation that the new business rates structure will proceed from April 2026, featuring a new higher multiplier for properties with a rateable value of over £500,000.

• New powers for mayors and combined authorities to introduce an overnight tourism levy on hotel and short-term accommodation stays.

• A continuation and extension of income tax threshold freezes until 2030/31, increasing the number of higher rate taxpayers through fiscal drag.

• A series of wider tax measures, including reforms to property and savings taxation, changes to salary sacrifice rules, and increases in duties on activities such as gambling and alcohol.

• Increases to the National Living Wage and National Minimum Wage, which will affect many retail, hospitality and leisure employers.

Taken together, these measures point to another predominantly tax-raising Budget at a moment when confidence is already fragile. Whilst the Government’s stated mission is to deliver growth and protect high streets there is a real concern that additional tax pressure risks pulling against that ambition, constraining investment, dampening spending and placing further strain on the businesses that drive economic activity.

Business Rates

The Government has confirmed it will proceed with its new business rates proposal, including the introduction of a higher “super tax” multiplier for the largest premises from April 2026. The uplift now appears to be around 2.8p, rather than the 10p increase previously modelled – but even at this reduced level, it still represents a significant long-term cost for major West End operators at a time when trading conditions are already challenging.

Flagship districts like the West End are disproportionately exposed to this higher multiplier because rateable values here are significantly above the national average, meaning large Retail, Hospitality and Leisure (RHL) businesses are far more likely to be captured by the higher rate.

Crucially, the Budget did not include any exemption for RHL businesses. Despite widespread evidence of sector-specific pressures, major employers and anchor destinations will still face increased bills — with no targeted relief for the large RHL operators that drive footfall, support supply chains and sustain the visitor economy.

We therefore remain deeply concerned that the higher multiplier will have a material economic impact on the West End, undermining competitiveness and deterring investment at a time when confidence is fragile.

We continue to call for:

• A sector-specific exemption for retail, hospitality and leisure businesses captured by the higher multiplier.

• A fairer approach that recognises the unique role of anchor destinations in supporting jobs, growth and tax revenue.

• A business rates system that supports, rather than penalises, high street investment.

In the near-term, we will be conducting our own impact assessment to under the scale of the West End’s increased business rates liability post-revaluation. We will also be seeking more clarity on how expanded business rates retentions zones could benefit London – so that businesses which are paying the most, see that reflected in services on their doorstep.

Overnight Levy

Managed properly, an overnight levy could help support the wider visitor economy. Managed poorly, it risks adding cost, discouraging overnight stays and widening the competitiveness gap with rival cities that combine modest levies with strong incentives such as tax-free shopping.

Our position is clear. Any levy must be:

• Proportionate and affordable.

• Set as a simple, fixed fee rather than a percentage of room price.

• Developed with direct input from business and embedded within a coherent tourism and international visitor strategy.

• Retained locally and transparently invested in visitor facing services, in proximity to the businesses funding the levy.

There will now be a consultation on the measures. We will work closely with the Mayor, Westminster City Council and Government to ensure that any future proposals reflect these principles and support, rather than undermine, the West End’s global competitiveness.

Have your say by responding to the consultation here.

Income Tax and Consumer Confidence

Extending income tax threshold freezes will reduce disposable income for many households. For a district that depends on both domestic and international spend, anything that weakens consumer confidence and squeezes household budgets will be felt directly in footfall, sales and future investment decisions.

Our Next Steps

Whilst today’s budget has been disappointing for West End businesses, our commitment to you is unchanged. We will continue to champion the issues that matter most to West End businesses.

In the weeks ahead, we will:

• Continue to press for meaningful, long-term reform of business rates, so that the system supports rather than penalises high street investment.

• Work with the Mayor, Westminster City Council and Government to shape any overnight tourism levy so that it strengthens London’s visitor economy and supports the West End, rather than undermining competitiveness.

• Make the case for a more competitive international shopping environment, including measures which recognise and encourage the contribution of international visitors to jobs and growth.

• Use our insights, data and evidence to demonstrate the real-world impact of these decisions on trading, investment and employment in the West End

As we look ahead, the priority has to be growth. The West End is one of the UK’s most productive economic centres, and its success depends on an environment that supports investment, confidence and competitiveness. We need policies that enable businesses to expand, create jobs and attract visitors, not those adding further pressure on economic activity. We will continue to press the Government for pro-growth measures that get the economy moving, unlock investment and secure the long-term success of the West End.