Local businesses are nervously waiting for the new business rate demands to be delivered by Islington Council.
At one point Islington traders feared a huge increase in their tax bills because the rates – due to be introduced on 1 April – were based on 2008 valuations, before the property market crash.
The Liberal Democrats have estimated that Islington businesses will face an average business rate increase of 35 per cent, while those in parts of the borough closest to central London will be hardest hit.
Despite some re-evaluation of the rates, business owner Karen Murdoch from Camden Passage still believes some traders will suffer.
Waiting game
“It is a waiting game at the moment as rate demands have only just dropped on people’s doorsteps,” she said. It’s not as big a problem as we had feared, but the people affected are those on Upper Street. Heaven knows what will happen next year when there isn’t a general election.”
However the new chief executive of Islington Chamber of Commerce, Ronke Lawal, doesn’t believe that local businesses should have to pay business rates in the first place.
“Business rates are one of those dubious kinds of taxes. Businesses already have to pay rent, corporation tax and national insurance if they have staff, so why again do they have to pay a tax on their property?” she said. “It wouldn’t be so bad if local councils could use business rates money but it all goes to central government.”
