West End Letters: Business Rates

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West End Extra - LETTERS TO THE EDITOR
Published: 8 August 2008

Business rates need to be cut

• VALERIE Goldston of Praed Street, believes that one-off shops can only survive if business rates are cut (For real change, lower business rates, says jewellery shop owner, August 1).
She is right. Especially in the present climate business rates, as other taxes, should be cut.
Small one-off shop often operate on very tight margins. Shops and restaurants in Connaught Street, for example, have suffered a great deal from the extension of the congestion charge zone under Ken Livingstone, and they suffer now again from the economic crisis.
Business rates are raised by the local councils, who have to transfer the money to the national government. The local councils then receive a percentage back from the national government. Westminster raises about £ 1 billion, and receives about 13 per cent back.
Where does the rest go?
This government transfers it to less successful councils. Those are typically Labour – run “rotten boroughs” in the north of England.
So our shops in Westminster are paying for those areas in the country which do not manage to attract businesses.
In other words: failure is rewarded.
Local councils who are business-unfriendly receive money from councils in business-friendly places.
Hopefully the change of central government will bring a change in the business rates system.
Cllr Jean-Paul Floru
Conservative,
Hyde Park ward

Send your letters to: The Letters Editor, West End Extra, 40 Camden Road, London, NW1 9DR or email to letters@westendextra.co.uk. The deadline for letters is midday Wednesday. The editor regrets that anonymous letters cannot be published, although names and addresses can be withheld.
Please include a full name, postal address and telephone number.
Letters may be edited for reasons of space.

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