Business rates could rise by as much as 40% in parts of central London.
An expected 10% increase in rates in central London was earlier condemned by the Mayor, but it now looks like the increase will be several times this amount in parts of the West End, Mayfair and Paddington.
The revaluation is based on a formula linled to rental valuations in April 2008, when the rental market was much stronger.
It is feared that the extent of the cost increases will cause significant stresses to build in companies, forcing some to close down.
The Government has allowed a transitional scheme to ease the increase over more than one year but the full amount of the new rates will still need to be paid back over time.
Source: Financial Times