London mayor has called for the cutting of business rates for night clubs, pubs and bars.
Sadiq Khan wants to save the London night-time economy by cutting business rates many of which have risen by as much as 50% in recent years and causing many businesses to fold up faced by crippling debts and overhead costs
Khan published his economic development strategy this week, and has said the government should shake-up the business rates systems to save London firms, especially businesses in the centre of the capital.
He is calling on the Valuation Office Agency (VOA) to review its valuations for clubs, restaurants and live music venues, saying he is concerned these businesses faced disproportionately large rises in business rates in this year’s revaluation of the property tax.
Some properties in central London were saddled with 50 per cent rate rises.
Alex Probyn, president of ratings advisory firm Altus Group, said: “The night-time economy is vital in reinventing and revitalising many of London’s towns centres and in maintaining its draw as a cultural capital.
“Business rates are a blunt instrument for such targeted support, especially if the Mayor is looking for the VOA to take a national approach.”