The operator of the Channel Tunnel has frozen millions of pounds of planned investment in Britain and warned that rail fares could rise after the Valuation Office Agency (VOA) proposed a 200 per cent increase in its business rates bill.
Eurotunnel, owned by French group Getlink, said it was in “deep disagreement” with the planned revaluation, describing it as “unjustified and confiscatory in nature”. The company currently pays £22 million a year in business rates but believes this could jump to £65 million by 2028, even after transitional relief. It expects next year’s bill alone to reach nearly £36 million.
A Getlink spokeswoman said the proposed increase amounted to a marginal tax rate of 75 per cent on new investment, making future UK rail investments loss-making. “Eurotunnel has therefore frozen all new rail investments in the UK,” she said.
The move has led the company to abandon two key freight projects worth around £15 million, including reopening a freight terminal in Barking and launching a new direct service from Lille. The operator passes much of its business rate burden onto train operators that use the Channel Tunnel, including Eurostar — meaning passenger fares are likely to rise.
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