Chancellor John Healey's reported plans for an emergency tax cut for high street businesses, by increasing the threshold for small business rates relief (SBBR), may not significantly boost most firms in central London's busiest areas, including Soho and the West End, according to analysis.
The Chancellor is reportedly considering raising the SBBR threshold to £17,096, up from the current £12,000, which would exempt businesses with a rateable value below this new figure. However, data from knowyourrates.co.uk indicates that only 3.8 per cent of premises in Westminster, encompassing Soho and the West End, would benefit from this change. This contrasts with areas like Sutton and Barking, where the proportion of benefiting businesses rises to 26.5 per cent and 26.2 per cent respectively.
Specifically, only seven of Soho's 1,102 shops, cafes, pubs, and restaurants would see their business rates removed under the proposed change, and 43 of the West End's 8,974 premises would benefit. Alan Fang, creator of knowyourrates.co.uk, described the tax cut as an "outer-London measure."
Retail and hospitality bodies have suggested that the Chancellor needs to implement further measures to address the tax burden on high streets. Dee Corsi, chief executive of the New West End Company, stated that the proposed cut to thresholds would "backfire" for retail and hospitality firms in the district.