The owner of the Channel Tunnel has threatened legal action against the UK government after a sharp increase in business rates, warning that the higher tax burden has made further
investment in Britain increasingly difficult.
Paris-based transport and infrastructure group Getlink, which owns and operates Eurotunnel services connecting the UK and France, said its business rates bill has nearly tripled over the past three years despite no significant changes to its infrastructure.
Chief Executive Yann Leriche said the company's rateable value had risen from £40 million annually to £118 million, describing the increase as unjustified and financially damaging.
"The near tripling of our business rates has occurred without any change to our infrastructure and with no clear justification," Getlink said in a statement.
Speaking to BBC Radio, Leriche said the company would pursue all available legal avenues to challenge the increase.
"We have no choice but to use every legal option at our disposal," he said.
The dispute comes as businesses across Britain raise concerns about rising operating costs and tax pressures. Getlink warned that the current environment has undermined confidence in the UK market.
"At this level of uncertainty, we are not willing to invest in the UK," the company said.
According to Leriche, the combined impact of business rates and corporation tax means Getlink will pay 69 pence in tax on every additional pound of revenue generated in Britain.
Business groups have also expressed concern over the growing cost of operating in the UK. Earlier this month, Confederation of British Industry Chief Executive Rain Newton-Smith warned that excessive tax increases could discourage investment and fuel inflation.
"Business is not a cash tap that can be turned on without consequence," she said.
In response, Britain's tax authorities defended the valuation system, saying assessments are based on long-established methods and the specific characteristics of each property.
A spokesperson for HM Revenue & Customs said businesses that disagree with their valuation have the right to challenge the assessment and appeal to the independent Valuation Tribunal if necessary.
The dispute highlights growing tensions between the government and major infrastructure operators as businesses grapple with higher taxes and economic uncertainty. Photo by Billy69150, Wikimedia commons.
