Falling pound and VAT hit Safestore

The UK's biggest self-storage firm counted the cost of the Chancellor's Budget raid on the industry and a falling pound as it veered into the red.

George Osborne's move to impose VAT on self-storage last year saw Safestore tumble to a pre-tax loss of £19.5m for the year to 31 October last year, well below the previous year's £8.5m profit. A 10 per cent slide for the pound against a surging euro also dented profits from its French stores.

Despite the tax blow, Safestore's occupancy rate rose to 63.9 per cent.