Member Article

London SMEs call on Sadiq Khan to focus on business rates reform

Small businesses in the capital have implored new Mayor Sadiq Khan to signal his intentions when it comes to business rates reform, in a survey taken just days after he assumed the post.

The poll from the Federation of Small Businesses (FSB) asked small business owners what they would like to see from the new Mayor in his first 100 days, and over a fifth of respondents (38%) believe business rates should be at the top of Khan’s agenda.

With London’s business rates due to re-evaluated in 2017, many have called for a reform of how the antiquated rates system is calculated.

Currently, rates are calculated based on the estimated worth of a firm’s property in terms of annual rent; however, valuations only take place every five years meaning they are often out of step with the actual value of a property.

Commenting on the need to look at business rates reform, Sue Terpilowski, London Policy Chairman at the Federation of Small Businesses, said: “Now that we have had proper business rates reform in Scotland, followed by England and Wales, the focus must now turn to London - especially with all eyes on a new Mayor at City Hall.

“We must build on the current package across the UK and support the Capital. The average rateable value of a property in the capital exceeds the next closest region (the South East) by around £23,000 and so it is critical that fiscal devolution of business rates meets the needs of London’s small businesses.”