Residents, shoppers and workers in Islington are being invited to urge the Government to reduce the amount of business rates that Islington’s smallest businesses have to pay.
Last year, the Government brought in a huge hike in rateable values for Islington businesses, the third highest increase in England. This has meant massive business rate bill rises for many Islington firms, with the worst-hit firms seeing a 42 per cent increase by 2020-21. In the last 18 months more than 200 Islington businesses have closed.
Now the Islington Chamber of Commerce has launched a petition, supported by Islington Council, calling for the Government to increase the threshold for Small Business Rates Relief from £12,000 to £20,000 for Inner London.
This would mean hundreds of Islington’s smallest businesses – an estimated 850 – would save around £4,000 a year, cutting the burden on smaller businesses at a time of rising rents and other costs.
The petition also calls to make business taxes fairer by making sure multi-national online businesses pay their fair share, and for a fundamental review of business rates to create a fairer system.
To sign the petition click here or find it in many of Islington’s shops and businesses.
Hak Huseyin, chair of Islington Chamber of Commerce, said: “The changes within our town centres have already started, with businesses closing and job losses – and the real impact will come after this April’s rates bill lands, when the additional funds set aside to assist run out.
“Our town centres provide local employment as well as a real community hub – national Government need to know the impact of their new system is seriously damaging businesses and the local community.”
Cllr Asima Shaikh, Islington Council’s executive member for inclusive economy and jobs, said: “Small businesses are at the heart of our community, creating jobs and opportunities, but many have been hit hard following the Government’s increases in rateable values.
“We’re strongly supporting this call for the Government to increase the threshold for Small Business Rates Relief – it would make a huge difference to Islington’s smallest businesses.”
The new petition echoes a similar call from the Federation of Small Businesses (FSB), which has also called for the Government to increase the threshold for Small Business Rates Relief.
It also follows a 2017 petition from the Islington Chamber of Commerce, supported by Islington Council, which called for the Government to scrap its planned increase in rateable values for Islington, and attracted more than 14,000 signatures.
Following the petition in Islington and similar calls in other parts of the country, the Government announced extra funding to local authorities to help businesses facing rate increases following its revaluation. Last year all £5 million of this funding was paid out by the council via its Revaluation Relief Scheme.