Thousands of firms face closure if business rates soar, Mayor warns
THOUSANDS of London firms could be forced to close if the Government “blunders on” with plans to increase business rates, Sadiq Khan warned today.
The Mayor accused ministers of giving businesses in the capital “a kick in the teeth”, with more than 7,500 expected to see a 45 per cent rise in their bills this April. He claimed the character of the capital’s high streets was under threat from the “double whammy” of the business rates hike and uncertainty over Brexit.
London faces increases of at least £900 million — rising as high as £1.1 billion — which would fund a cut in rates across the rest of the country.
The warning came as the Mayor, London councils and business groups from across the city wrote to Chancel- lor Philip Hammond, urging him to protect businesses from increases.
Chinatown and the West End, as well as parts of inner London such as Islington and Hackney where property values have increased dramatically, could be particularly badly hit.
Mr Khan told the Standard: “I am genuinely shocked that the Government’s actions will damage the prospects of so many businesses in the capital, putting many at risk of closure. The very character of our local high streets is under threat — London’s businesses have been warning about the damaging effect of this skewed and unfair revaluation for months and yet the Government blunders on.
“This is the last thing London businesses need and will serve as a kick in the teeth for tens of thousands of companies in the capital who are still digesting the recent vote to leave the European Union. Alongside the uncertainty created by Brexit, this will serve as a double whammy for business in London.”
The Mayor called on ministers to address the “unfair and damaging” situation by bringing in measures to soften the blow. The Standard revealed yesterday that while ministers are not planning a “U-turn”, they have not ruled out a cash cushion.
City Hall also wants the current national £12,000 rateable value threshold, below which small businesses receive 100 per cent relief, raised to a more realistic level.
Ministers are also under pressure to bring in transitional arrangements. At the last revaluation in 2010 no business faced an increase of more than 12.5 per cent in the first year. But under the new plan businesses in Islington face rises averaging 30.7 per cent. Hackney’s increases will average 31.7 per cent and Lewisham’s 22.6 per cent. Sir Peter
‘This is the last thing London businesses need and will serve as a kick in the teeth’ Mayor Sadiq Khan
Rogers, chairman of the New West End Company, said the Government should heed “widespread pleas from businesses of all sizes” and the London Chamber of Commerce said there is “real concern about the future of London businesses.” @PippaCrerar