Exclusive: “How Can They Expect Any Business To Keep Going With These Increases, They Are Killing Off Hornchurch High Street.”

On Tuesday 1 April shop owners across the country faced an increase in their business rates. Hornchurch shop owners are fearing the end of our High Street as bills rocket up incredibly with some going up from £480 to £1200 a month.

These hikes are not set from Havering Council, but from the government, with 33% of the revenue going to the government, 37% going to City Hall and the remaining just 30% going to Havering Council to recycle back into our borough.

The Havering Daily visited several stores across Hornchurch High Street to chat with owners about the unbelievable hike they face.

Stefania runs the much loved and very popular Hornchurch beauty salon Utopia on the High Street and has had her bill increased by 142%. She told the Havering Daily: “How can we operate with a bill like this? They are going to lose businesses, we will have no choice but to close.

“We have this increase, then we have the National Insurance increase, plus we have the £3 an hour parking for our clients. People are struggling as it is and this is not the way to support them. They are forcing businesses to close.”

Stefania from Utopia.

Hornchurch shop owners are on their knees and looking for support to keep going, instead what they are faced with is an ever increasing lists of bill hikes.

Sapan runs Fonehouse, on Hornchurch High Street and told the Havering Daily: “I was paying £320, now it’s £800 a month. I’m a new business and it is not at the stage that it is profitable yet. This is not right.

“Businesses cannot afford what they are doing to us. I am trying to build a base here and they are making it really hard for myself and other businesses. This is a huge hit for me. It has more than doubled.”

Sapan from Fonehouse.

Also badly impacted has been the shop Bear With The Hair that does a truly fantastic job in our community supporting women with no hair, or fine or thining hair.

The owner of the store told the Havering Daily: “This rise is going to cripple me. I am an independent business and try and keep my prices as low as possible. I am providing an essential service for ladies suffering hair loss and no help from anywhere.

“My rates have increased over double now to £800 a month. I also have to pay £125 a month just to park my car each day. It’s going to get to the point where to run a business is just not viable anymore. It is cheaper for us to shut our shops then keep running them with these bills.

There are very few places where ladies who suffer hair loss can go and not be ripped off. These business rates could be the difference between closing or carrying on. It is really upsetting that we are paying this much, but get zero help.

“I really fear I will end up another empty shop on our already dying High Street.”

Another business hit by the increase has been the family run restaurant on Hornchurch High Street Umberto.

The Owners of this much loved Italian eatery told the Havering Daily: “How do they expect businesses to pay these prices? We are all struggling. People are struggling. Our bills have doubled. We pay to park, we pay to have glass removed, and now the increase in business rates. How can we afford this?

“We get no support from anyone here.”

Enzo from Umberto

London Assembly Member for Havering and Redbridge told the Havering Daily:

“We know that our High Streets are suffering but Rachel from Accounts has massively reduced the relief that retailers get from Business Rates this month which means those that were just keeping their heads above water will now sink.
“So over the coming months we will see more and more empty shops on our High Streets and shopping Centres.
“Yet more proof that the Chancellor and this Government are absolutely clueless when it comes to the economy.”

Hornchurch MP Julia Lopez told the Havering Daily:

“Each week I’ve been meeting local Havering businesses being whacked by Labour tax rises. The October Budget is really going to start hitting them from April. It’s not just Employer National Insurance contributions. Many small businesses are losing business rate relief too – the Chancellor’s choice to take retail, hospitality and leisure rate relief from 75% down to 40% means a massive rise in tax bills for local shops, restaurants and salons.

“This is going to mean price rises for local people and we’ll likely see job losses and business closures. Our local high streets cannot take this kind of blow. I have been raising these points in parliament and with Ministers.

“I understand that other London boroughs have stepped up their efforts to support businesses who now have to pay increased business rates. I have written to the Leader of Havering Council, and the Council’s Chief Exec to ask what they’re doing to support businesses in light of the changes. I am very aware of the precariousness of high street businesses, especially at a time when government is both adding to their costs and lessening support at the same time. I also continue to work with the Council to highlight challenges posed by the local government funding formula – something which might allow Havering better to support our High Streets.”

A spokesperson from Havering Council told the Havering Daily:

“We never want to see local businesses closing and are sorry to hear about the impact the increase in business rates is having on them.

“The business rates aren’t set by the Council, but by the Valuation Office Agency.

“Unfortunately, the relief businesses would previously have received was reduced by central government meaning increased payments for some businesses.

“Residents can visit our website for more information about the rates, discounts and exemptions.”
https://www.havering.gov.uk/business-rate

Our local high streets provide vital services and shops for local residents.

Havering Council is encouraging local residents to shop local to help keep our high streets going. There are many fantastic local shops such as the ones mentioned above and many more. Let’s shop local and help save our High Street before it becomes one empty premises after another.

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