The head of Clapham’s Business Improvement District has warned companies are at risk of folding after a proposed business rates revaluation.
This is Clapham is among 31 London BIDs – areas where businesses have voted to pay an extra levy to improve their environment – who are demanding a full review into the business rates increase expected in the city from next April.
The alliance formed in response to a government consultation, which took place in September and October this year, on the transitional arrangements for the revaluation.
This is Clapham manager Jeremy Keates said: “Increasing business rates coming in April could force businesses to lay off staff, increase prices, move out of the area or just cease to trade.
“The government is woefully letting down London businesses and we welcome the opportunity to join the campaign to oppose these proposals.”
The consultation showed London businesses faced an estimated £885 million annual increase in rates.
The amount a business pays depends on the area’s average property rental value, size of property and if it is eligible for relief.
Groups including the mayor, London Councils, London First and London Chamber of Commerce are seeking transitional relief that would enable businesses to generate income to meet the rise.
Rajesh Agrawal, deputy mayor of London for business, said: “It is unacceptable that thousands of firms in the capital are in effect facing a 50% increase in their business rates bills with barely six months notice.”
There are concerns the increase in rates will slow down investment, job creation and profitability, at a time when confidence and stability are needed.
This is Clapham BID was established in 2014 with the aim of making Clapham a better place to work in, live in and visit.