Eurotunnel, the operator of the Channel Tunnel, has halted its UK projects, claiming “unsustainable” levels of taxation has made any future investments “non-viable”.
The company said it had been informed its business rates would increase by some 200% from next year.
It hit out at the government, arguing that the higher costs were “clearly contrary” to ambitions of growing the economy and increasing investment.
The Treasury said it would support firms “hit hardest” by tax hikes and would continue talks with affected industries over such concerns.
Are “business rates” income taxes? If so, it makes no difference to investment decisions. If investment is profitable (after all existing and future expenses including interest on debt deducted) then it is also profitable after taxes.
No they’re more like business property taxes, they’re complicated but usually defined as a fraction of what the market rate rent would be on the property the business is using.