Member Article

Call for more affordable space in London as rents and business rates rise

A new poll of London businesses has highlighted the struggles many business owners are facing when it comes to rising rents and the recent business rates revaluation.

Canvassing 500 businesses from across the capital, the study by ComRes for London Chamber of Commerce and Industry (LCCI) found that a third (33%) of business cited rental costs as their central worry followed by business rates (29%).

The issue of rents and affordable space is, rather predictably, far more of concern for businesses operating within Inner London compared to those on the outer ring, with 48% of Outer London businesses saying they did not have any concerns surrounding business space compared to just 32% of Inner London businesses.

LCCI Chief Executive, Colin Stanbridge, has implored the Government to do more to help City Hall and the London Boroughs support businesses at a time of immense political and economic uncertainty.

He commented: “We need to be doing all we can to support London’s local businesses at a time where there is a prevailing sense of uncertainty with Brexit.

“One way the Government can assist is by helping City Hall and London Boroughs ensure there is a good supply of affordable and accessible space for business and commerce.”

The findings come ahead of the beginning of a review into the London Plan this Autumn and the LCCI have said they will repeat their calls for Central Activity Zone to be exempted from Permitted Development Rights, thus ensuring more space can be utilised for commercial and business purposes.

Stanbridge added: “The profile of London working is changing with, for example, Tech and Co-working having grown significantly since the last London Plan Review – something we all want to see continue, but it will only do so if there is a suitable and affordable space to use in the capital.”