Small businesses urge Khan to take prompt action over rates

London’s army of small businesses have put fixing the capital’s business rates crisis at the top of their demands for new Mayor Sadiq Khan — and given him three months to do it.

A poll for the Standard by the Federation for Small Business (FSB) showed one in five of its members said a revamp of the antiquated system — a levy on a company’s property — was a critical issue, and called for clarity on Khan’s plans in the first 100 days of his tenure.

Before his election earlier this month, Khan pledged to tackle rising rates bills as responsibility for them falls into the hands of councils from 2020. The capital pays around a third of the £24 billion paid to the Treasury in rates each year.

The FSB’s London policy chairman Sue Terpilowski said: “It is critical that fiscal devolution of business rates meets the needs of London’s small businesses.”

Businesses also called for Khan to improve the affordability of commercial space, reduce congestion and improve the capital’s broadband.

It emerged last week that the overworked Valuation Office Agency had received 999,000 challenges against its last revaluation, in 2010, and 29% had resulted in the businesses’ tax being revised.

The Evening Standard is calling for a reform of the business rates system.