The operator of the Channel Tunnel, Eurotunnel, has frozen millions in UK investments and warned of potential rail fare increases. This follows a proposal from Britain’s Valuation Office Agency to raise its business rates by 200 percent. Eurotunnel, owned by Getlink, called the planned hike unjustified and stated its annual bill could jump from 22 million pounds to 65 million pounds by 2028.
A Getlink spokeswoman explained the increase creates a marginal tax rate of 75 percent on new investment, making UK rail projects loss-making. Consequently, the company has abandoned two freight projects valued at 15 million pounds. Eurotunnel passes much of its cost to train operators like Eurostar, which may lead to higher passenger fares. Eurostar warned the increase contradicts government goals for growth and low-carbon rail travel.
Eurotunnel director John Keefe said the valuation method lacks transparency and threatens future investment. The company is prepared to pursue all measures, including legal action, to protect its interests. The Valuation Office Agency stated its valuations reflect property market changes and follow legal standards, noting that discussions with Getlink continue.
A Getlink spokeswoman explained the increase creates a marginal tax rate of 75 percent on new investment, making UK rail projects loss-making. Consequently, the company has abandoned two freight projects valued at 15 million pounds. Eurotunnel passes much of its cost to train operators like Eurostar, which may lead to higher passenger fares. Eurostar warned the increase contradicts government goals for growth and low-carbon rail travel.
Eurotunnel director John Keefe said the valuation method lacks transparency and threatens future investment. The company is prepared to pursue all measures, including legal action, to protect its interests. The Valuation Office Agency stated its valuations reflect property market changes and follow legal standards, noting that discussions with Getlink continue.
