PRESS DIGEST - Financial Times - May 26

Financial Times

LONDON STREETS AMONG WORLD'S MOST EXPENSIVE FOR RETAIL RENTS

Glamorous shopping destinations for the wealthy are continuing to demand increasingly higher rents, despite signs of a consumer slowdown across the world. According to a report from Colliers International, Bond Street and Oxford Street are the fourth and fifth most expensive places in the world for retailers. The report also says that supply of good retail locations is limited, and that as a result, rents are likely to keep on rising in both the short and medium-term despite the economic slowdown.

GLOBAL FEARS OVER VAT COMPLIANCE

A survey from KPMG has revealed that multinational companies have strong confidence in Britain's tax regime, with corporations believing that the UK's VAT system is more business-friendly than that of rival states. However, Britain is next year due to take a tougher approach to penalties, potentially jeopardising its business-friendly reputation. Half of the finance directors surveyed said VAT compliance was the biggest tax risk they face, and their concerns are growing as governments place further emphasis on VAT as corporate tax revenues come under pressure.