Sadiq Khan: London mayor calls for business rates holiday extension over fears of tens of thousands of job losses | Business News

Sadiq Khan is asking for the federal government to increase the business rates holiday for one other 12 months as firms say reintroducing the rates can be the “last blow” for these already struggling through the pandemic. 

Business rates for the retail, hospitality and leisure sectors have been halted in England till the brand new monetary 12 months begins subsequent April.

The mayor of London, together with councils within the capital, have urged the speed holiday to be prolonged to 2021/22 over fears tens of thousands of jobs may very well be misplaced within the metropolis.

“Businesses throughout London proceed to wrestle from the affect of COVID-19,” Mr Khan mentioned.

“If the business rates holiday involves an finish, I fear any employers may have no selection however to make extra individuals unemployed.

“Many giant retail, leisure and hospitality companies – accounting for thousands of Londoners’ jobs – are taking vital selections for the subsequent monetary 12 months proper now, so certainty over the business rates holiday is required urgently.”

The London mayor additionally referred to as for an extension to the business rates holiday for childcare suppliers, which he mentioned had been “essential” in permitting Londoners to return to work.

The New West End Company, representing 600 companies within the capital’s buying district, mentioned reintroducing business rates subsequent April can be the “last blow”.

“The outcome can be extra business closures and doubtlessly 50,000 job losses, severely diminishing London’s enchantment to guests, buyers and world expertise,” mentioned chief government Jace Tyrrell.

UK unemployment rises to 4.1%

“We recognize the assist that the federal government has given to companies to this point however it’s clear that the affect of COVID-19 goes to final for much longer than initially anticipated.”

Mr Khan and London Councils, which represents the capital’s 32 borough councils and the City of London, additionally need to see reforms to the system as a complete – together with devolving the facility to set business rates and making the system simpler to know.

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Councillor Clare Coghill, London Councils’ government member for Business, Europe and Good Growth, mentioned many companies are “nonetheless reeling from the long-term impacts of COVID-19”.

“Ending the business rates holiday too quickly will destabilise too many firms, resulting in closures, job losses and a shrinking financial system each in London and throughout the remaining of the nation,” she mentioned.

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