Eurotunnel Halts UK investment after swearing off business rates three times
A station tunnel operator has frozen millions of pounds to invest in Britain and has warned that FREE CASH money could rise after a 200% tax hike.
Eurotunnel, owned by the French Group GetLink, said it “deeply disagrees” with the planned renewal, describing it as “illegal”. The company currently pays £22 million a year in business rates but believes this could jump to £65 million by 2028, even after relief. It expects next year’s Bill alone to reach around 36 million.
A spokesperson for GetLink said the proposed increase was marginal tax rates of 75 per cent on new investment, making it less likely that future revenue would be lost. “So Eurotunnel is frozen with all new rail investment in the UK,” he said.
The move led the company to lose two major cargo projects worth $15 million, including reopening the cargo terminal in Bark and launching a new direct service from Lille. The operator is passing on its business responsibility to train users using the station tunnel, including Eurostar – which means passenger fares are likely to rise.
Eurostar warned that a significant increase in business rates “could be at odds with the government’s ambitions for economic growth, European rail connectivity, and the promotion of low-cost rail travel”.
A concern raised by GATWICK Airport, whose planned second runway could be demolished by 300 per cent, could be a rise in its business tax rates.
John Keefe, Eurotunnel’s director of Public and Corporate Affairs, said that VOA’s approach is not lacking and does not match the growth ambitions of the Ministers. “Since 2017 we have had, in addition to three measures, a nine-fold increase in this measure,” he told Politik. “If you take all the money at business rates, there’s nothing left for investment.”
Eurotunnelnel for one said that they “pursue all the means at their disposal” If the proposals continue, including legal action “to protect its interests and, the future of cross train travel”.
It argued that it is “unfairly penalized compared to its competitors” by overly broad carbon taxes.
VOA said its ratings merely reflect changes in the property market and are conducted by experienced professionals according to legal and industry standards. It stressed that it does not set business prices and that negotiations with GetLink are ongoing. Businesses can challenge valuation and appeal decisions through the Independent Valuation Tribunal.
A government spokesman said targeted support would be provided to companies facing “very large renewal increases” and that officials were exploring other options ahead of the next renewal.
GetLink shares fell 1.2 percent in Paris trading on Thursday following the announcement.
