Stoke Newington traders fear loss of business rate relief could be ‘final straw’

Heidi Early outside her Church Street shop. Photograph: courtesy Heidi Early / free for use by LDRS partners

Local traders have lobbied Hackney Council for support as they brace for a drop in business rate relief which they believe could be their “death knell”.

The start of April has marked a hike in employer’s National Insurance (NI) alongside a higher minimum wage, and shopkeepers are warning that the government’s decision to reduce the rate reduction may lead to layoffs and threaten their survival.

In October’s budget, the Chancellor announced that the business rate relief scheme, which offers a discount on tax collected from those using commercial properties, would continue – but the exemption would fall from 75 per cent to 40 per cent.

Holly Wilson, who has run the Church Street cookware store Prep for the past decade, said that taken together these changes amounted to a “triple whammy” for retailers.

“It’s devastating for small businesses like mine. Businesses up and down Church Street and the high street are impacted by this – we’re all in shock. ” she said.

“Potentially it will mean having to let staff go. There’s only so much we can push up our prices to cover costs.

“I want to be a local business that people can afford to shop in. It just feels like the government has really got it in for small businesses.

“We do so much for the local economy and for the community, yet it’s becoming harder and harder for independent businesses to survive.”

Her fears are shared by the owner of Earlybird Cards, Heidi Early, who is also chair of the Stoke Newington Business Association.

She has asked the Town Hall to step in to protect the borough’s independent traders by following the lead of Barnsley Council, which recently launched a £5m support package for businesses.

After receiving advice from the Barnsley and Rotherham Chamber of Commerce about the same “triple whammy” risk, the local authority offered 100 per cent relief for qualifying retail, leisure and hospitality firms.

“With no government or local government help on the horizon, I fear we will see many businesses who have been struggling decide to finally close their doors,” Ms Early said.

“That will be devastating for our community.”

Although local business rates, also known as ‘non-domestic rates’, are collected by Hackney Council, the council has no control over the charges which are set by central government.

A spokesperson for Hackney Labour said the party was committed to helping build a strong local economy, and that it had always supported and championed local businesses and sustainable high streets.

They added that the party had long called for reform of the business rates to a more affordable level for local businesses, and that the current government had “picked up” this call with its proposals to change the system.

“We are committed to the survival of our local economy – our local businesses create jobs for local people and their premises are often the community hub of local residents, helping social cohesion and alleviating loneliness and exclusion,” the spokesperson said.

Hackney Labour also urged any local businesses to make contact with the council as soon as possible if they were in need of support.

Speaking to the Citizen, a Town Hall spokesperson said: “Small businesses are the lifeblood of Hackney, and we fully appreciate their concerns and the difficulties they are experiencing.

“However, like nearly all councils, we cannot simply step in to cover the changes in business rate relief being applied nationally – nor will a one-off discount address the longer-term challenges that businesses face,” the spokesperson said.

“Instead our focus is on supporting our business community to remain sustainable.

“That’s why we have invested £1m to make business space more affordable, are extending the Hackney Impact programme that has already provided tailored business support to over 300 local enterprises.”

The spokesperson added that the council had also expanded its Green Energy Grant scheme to help businesses reduce their energy bills and carbon footprint.

“Our door is always open, and we would encourage any business experiencing hardship to come to us to discuss how we can support them.”

Stoke Newington councillor Liam Davis (Green) told the Citizen a rates discount for local traders “could be the difference between staying open or shutting down”.

“While I welcome Hackney Impact’s advice and mentorship offer, it won’t be enough to save businesses already on the edge of closure.”

He added that the Green Party nationally would overhaul council funding and push for “urgent” VAT cuts to “protect our high street”.