Rising Business Rates could be the final straw for some Stokey businesses

A sharp drop in Business Rate relief is the latest in a string of financial blows to leave Stoke Newington’s shops and businesses reeling. 

Holly Wilson, whose cookware store Prep has been in Stoke Newington Church Street for the past 10 years has seen the amount she pays in Business Rates increase by 167%. Her bill is up from £121 per month last year to £323 per month this coming year. 

She said: “This April will see the Minimum Wage go up and our National Insurance contributions will also go up. Reducing Business Rate relief from 75% to 40% is a triple whammy!  It’s devastating for small businesses like mine.  Businesses up and down Church St and the High St are impacted by this - we’re all in shock.

“Potentially it will mean having to let staff go. There’s only so much we can push up our prices to cover costs. I want to be affordable, to be a local business that people can afford to shop in.  Post covid and post Brexit, our costs have already gone up, electricity has gone up too. 

“It just feels like the government has really got it in for small businesses. We do so much for the local economy and for community yet it’s becoming harder and harder for independent businesses to survive.”

This April the National Living Wage is increasing to £12.21 per hour (up from £11.44) and employers national insurance contributions will rise from 13.8% to 15% for all wages over £5,000 (the levy previously only applied to earnings over £9,100).

Business Rates are dictated by central government and collected by local councils. In 2023, qualifying businesses were given rate reliefs of 75% in a bid to help high streets survive post-pandemic.  

Stoke Newington Business Association is warning reducing that rate relief could be the death knell for some local companies and they’re urging Hackney Council to follow the example set by other councils and create a support package to help.

Heeding advice from its local Chamber of Commerce, Barnsley launched a £5m support package, offering 100% Business Rate relief for qualifying retail, leisure and hospitality businesses.

Heidi Early, Chair of Stoke Newington Business Association, said: ““It would be great if Hackney could follow the example set by Barnsley and step in to protect the borough’s independents.

“With no government or local government help on the horizon, I fear we will see many businesses who have been struggling decide to finally close their doors.  That will be devastating for our community.”

Heidi’s own store Earlybird Cards is among those impacted. She added: “With all these additional costs hitting us from April, our business needs to find an extra £600 per month just to stand still. In addition, we’re seeing our supplier prices rising as everyone tries to cope with these new costs so what little margins we were working with have been even further diminished.

“More than ever, we need the local community to shop local and help safeguard the future of small businesses.”