Sadiq Khan calls for business rates holiday extension

In a joint letter with the chair of London Councils, Khan called for an extension of the holiday, which was introduced at the beginning of the coronavirus crisis and is due to expire on March 31, 2021. 

In the letter, Khan said such a move would be a “lifeline” for London-based retailers, hospitality businesses and leisure operators that have been hit particularly hard by falling footfall and the collapse of international tourism as a result of the pandemic. 

Khan also used the letter to request that Jenrick support London businesses via the Local Restrictions Support Grant and discretionary grants, by tailoring the relief to take specific account of rental and rateable values in the capital. 

Khan said: “I vow to work closely with ministers to do all we can to help Londoners support one another through this second wave and the very challenging weeks and months ahead.

“That is why I have today written to the secretary of state for housing, communities and local government to set out my broad areas of concern that must urgently be addressed.

“These include additional support for London’s economy and businesses, vital funding for local authorities and extra support for the vulnerable.”

Last week, the treasury’s consultation on business rates ended. As part of the call for evidence, the British Retail Consortium said that business rates across the UK should be slashed by 50% next year “to avoid a cliff-edge” when the holiday ends. 

The chief executives of some of the UK’s largest supermarket and convenience store chains, including Tesco, Morrisons and the Co-op, wrote a letter to chancellor Rishi Sunak calling for a permanent 20% reduction in business rates, which would, in turn, create 10,000 jobs in the retail industry and its supply chain.

Revo, the membership body for landlords and retailers, meanwhile, called on the government to “introduce relief at 50% for 2021/22” to protect jobs and to slash the business rates multiplier from 51% to 30%.