LONDON/PARIS – The operator of the Channel Tunnel, Eurotunnel, said on Tuesday it faces a near 200% increase in its business rates bill from British authorities, a move it called “confiscatory” and a threat to its investment capacity in the UK.
The planned hike, proposed by Britain’s Valuation Office Agency (VOA) as part of a triennial review of business rates, would dramatically increase the rateable value used to calculate the tax Eurotunnel pays on its UK infrastructure.
The company, a subsidiary of Getlink SE, said its business rates charge for 2025 is expected to be €26 million. Should the VOA’s proposal be confirmed, Eurotunnel warned the increase could amount to an additional €15 million in 2026, after accounting for transitional relief.
“Eurotunnel expresses its deep disagreement with this planned increase and considers it unjustified and confiscatory in nature,” the company said in a statement. It added that the move “threatens Eurotunnel’s investment capacity in Great Britain.”
The Group said it would continue negotiations with the VOA and its supervisory authorities ahead of a final valuation decision expected by the end of March 2026.
Eurotunnel also signaled it is prepared for a legal battle if the increase is confirmed. The company said it would “pursue all measures at its disposal – including those in compliance with the 1986 founding texts of the Franco-British Concession – to assert its rights before the competent authorities, courts and/or tribunals.”
In its statement, the company argued it is being unfairly targeted compared to its competitors. It said it is “unduly penalised compared to its competitors whose activities are more carbon-intensive, less-taxed, and some of which are deviating from the social models applicable in France and Great Britain.”
The Channel Tunnel is a critical transport link, carrying a quarter of the trade between mainland Europe and the United Kingdom. Eurotunnel said it believes the proposed tax hike risks the future of cross-Channel rail transport.