Half of London firms voice fears over plans to revamp business rates

ALMOST half of companies in the capital are concerned about a looming hike in business rates, the London Chamber of Commerce and Industry warned today.

The organisation’s snapshot of more than 500 businesses found that 44% of respondents were worried over the potential revaluation of business rates due to be announced in October — rising to 55% among those employing 10 or more people.

Since 2010, nationwide business rates have been calculated using the much higher, 2008 pre-recession property values. But while rents in London have recovered from the crash and risen further, they have stagnated across the rest of the country. The revaluation — basing rents on April 2015 levels from next year, is likely to massively increase the burden on companies in the South. According to research by Colliers, 324 of 431 UK ret ail centres will see a decrease while 76 — all in London and the South-East — face rises.

LCCI chief executive Colin Stanbridge said: “The Government must ensure that implementation is done transparently and in consultation with the c apit al’s loc al businesses who are stumping up, or we run a very real risk of businesses shutting up shop and moving out of London.”

The organisation also found that 42% of businesses said they were unsure if giving more control of business rates to London local government would have a positive impact on them.

Stanbridge added: “While LCCI welcomes the devolution of business rates in principle and recognises the role that businesses can play to fund infrastructure that benefits their locality, the Treasury needs to outline how reforms will work in London.”

The Standard is calling for a revamp of the business rate system.