‘Small wins give us confidence’, say business rates campaigners

United: Mayor Glanville speaks at a business rates summit last month. Photograph: Hackney Council

Business rates campaigners are celebrating with an ounce of caution following Wednesday’s budget.

Chancellor Phillip Hammond said small businesses set to lose their rates relief will see increases capped at £50 a month.

He also announced a £300m discretionary fund will be set up for local councils to help the worst-affected firms.

The East End Trades Guild (EETG) has been campaigning against the rates rises alongside Hackney Council. They delivered a petition with over 10,000 signatures to Downing Street on Tuesday calling for more support for traders in the borough, some of whom faced rate hikes of over £100,000 a year.

EETG organiser Krissie Nicolson said: “We were very careful about what we asked for in our campaign and petition. It’s important to be pragmatic and work on things we can make changes on.

“It may not seem like the most dramatic win, but small wins will give us the confidence to take further action in the future.

“The closer relationship we now have with the council means we can work with them on how rates relief is distributed. But at least that extended relief is now there.”

Clapton resident Charlotte Day, who runs Dandy Star on Columbia Road, was more cautious: “Obviously, it is better than it was before, but the fine details still need to be provided. It is good that they seem to have listened and are making moves to ease the pain, but I’ll still be paying double for five years.

“And with the increase in national insurance contributions (NIC), it feels like small businesses are being totally punished.”

Hammond announced an increase in NICs for the self-employed, but Theresa May has already delayed the implementation of the policy until the autumn after a backlash from MPs.

Day added: “I didn’t vote for this government. After she was chosen as prime minister, Theresa May stood on the steps of Downing Street and said she would support people like me. I didn’t believe her then and I don’t believe her now.

“Small businesses are being punished for the deficit but it feels like the government is missing out on bigger fish. It is the system that needs to be adapted to bridge the deficit. Why should I be in the firing line?”

Hackney’s mayor Philip Glanville welcomed the additional rates relief, which he said would provide “extra support for at least 500 businesses in Hackney”, and the commitment to devolving the business rates system in London.

He said: “I would like to thank all those who signed our joint petition, gave evidence about the impact on local businesses and took part in the campaign. I have no doubt that these arguments have made a difference.”

But Glanville criticised Hammond’s failure to raise the threshold for rates relief in the capital and said the lack of details about the discretionary fund makes it difficult to tell how big an impact it will have.

“The extra money allocated to councils for discretional support will far from cover the spiralling bills in areas disproportionately affected like Hackney. We need clarity on how and when this funding will be available, and reassurances that it will be distributed fairly based on need.”