Thu, 20 Nov 2025

Thu, 20 Nov 2025 Channel Tunnel says UK investment 'non-viable' as it halts projects

The company claims "unsustainable" levels of taxation has made any future investments "non-viable".
Eurotunnel, operator of the Channel Tunnel, has halted UK projects due to "unsustainable" taxation levels. The company claims its business rates will increase by 200% from next year, making future investments "non-viable". Eurotunnel's chief executive Yann Leriche stated that the hike would put the company's total tax level at around 75% on UK earnings. He argued that such a high rate is "clearly contrary" to government ambitions of growing the economy and increasing investment. The Treasury has responded, saying it will support firms hit hardest by tax hikes and continue talks with affected industries. However, Eurotunnel has stated that discussions with the Valuation Office Agency (VOA) over business rates have been ongoing for 18 months without resolution. The company claims it has "no other choice" but to freeze future investments in railway assets in the UK from 2026. Eurotunnel's plans to reopen a freight terminal in Barking and run a new direct freight service from Lille have reportedly been scrapped due to the tax hike. The Channel Tunnel, which connects southern England and northern France, is operated by Eurotunnel, with passenger services through the tunnel provided by separate company Eurostar. Ahead of next week's Autumn Budget, Eurotunnel has called on the government to provide certainty on business rates. The company is not alone in issuing warnings to Chancellor Rachel Reeves, with supermarket bosses also warning about the impact of business rate reforms on their industry.
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