Chris Philp, Conservative MP for Croydon South, is leading a petition to protect small and family-owned businesses, which he said have been affected by the Government’s decision to increase business rates.
1,000 people have already signed the petition urging the Government to “rethink” its decision.
(Image: William Hallowell)
Mr Philp said: “Labour is flagrantly breaking its election promises by imposing the biggest tax rises for a generation.
“National Insurance is going up by £25 billion, causing job losses and lower wages.
“Small businesses like J D Motors and many others I visited in Purley are being hit with massive business rates increases too.
“This will also lead to job losses and business closures.
“These are terrible choices that Keir Starmer made in the budget last autumn – and now businesses and working people are paying the price.”
In a post on Facebook Mr Philp also said: “The previous Government supported small businesses by providing 75 per cent business rates relief for small retail, hospitality and leisure businesses, but the Chancellor of the Exchequer has now chosen to slash this to 40 per cent from April 1, 2025 (this is sadly not an April Fool’s joke).”
J D Motors, an accident repair centre on Russell Hill, next Purley high street, paid £2161.29 in business rates between April 1, 2024 and March 31, 2025, but expects to pay £5913.15 at the end of the current tax year between April 1, 2025 and March 31, 2026 – a rise of more than 173 per cent.
John Ives-Brown, owner of J D Motors, said: “If small businesses are not supported, local skills and trades will die out.
“If there are no small body shops, people will be forced to go to the big dealerships that are usually more expensive than small homegrown garages. Businesses bring money into towns.
“Increased business rates have put extra pressure on struggling businesses. They are already working within a tight margin trying to manage utility payments and the cost of living.”
The 63-year-old added: “All of the garages on Russell Hill Place are exempt from business rates but because J D Motors has a slighter larger workshop and premises they are penalised.”
Other small business owners in Purley have raised concerns that the future of the high street hangs in the balance without the support of the Government.
“So I think it’s actually very important for them to be running and obviously they need support as well.”
Jalak Korat, 25, manager and partner of Cheers Express, a convenience store on Purley Way near the high street, said it’s hard to compete with large supermarket chains – especially if they’re cheaper.
“If you start a small business, in future maybe you’ll get a large business and you can grow,” he said.
“For a small business we need the support from the Government. We have just started a small business, there is a lot of potential for the business.
“A small business in a residential area can’t compete with like Sainsbury’s and Tesco because they have margins of five, 10 per cent and small businesses’ margins are 25 per cent.”
With added personal bills like rent, travel and other expenses, “you can’t manage it”, Mr Korat said.
He added that the Government should support small shops like his to grow.
