London's traditional private members’ clubs today warned their future may be in jeopardy if next year’s business rates rises go ahead as planned.
The body that represents dozens of world-famous “clubland” institutions such as Boodle’s, the Carlton, the Reform and White’s told the Standard it was “extremely concerned” about their future financial viability when the increases come into effect in April.
Ian Faul, acting chairman of the Association of London Clubs, which has 55 members across St James’s and elsewhere in the West End dating as far back as 1693, said: “A year-on-year increase of something in the region of 50 per cent places a huge financial burden on non-profit-making organisations which in a number of cases will certainly impact on the financial viability of some of London’s oldest members’ clubs.
“All clubs understand that rates need to increase, however we would hope that an adjustment could be made to valuations that is credible, realistic and understandable.”
Matthew Rivett, the boss of Oriental Club in Marylebone, founded in 1824 by returning officers from India and the Far East and whose members have included the Duke of Wellington, has written to Mayor Sadiq Khan to warn that the proposed rates increase “will have a dramatic effect on the future viability and success” of the venue. In a letter seen by the Standard, he said: “I call upon you in the strongest terms to do all in your power to address these concerns.”
Nick Jones, founder of the Soho House group of private members’ clubs and restaurants, warned: “The creative soul of London relies on small businesses — they’re part of what makes the city so vibrant and exciting. But in the last few years, heavier taxation has added to the running costs of these businesses.
“We’re already seeing the effects of Brexit on our workforce, with fewer EU workers coming to the UK. London is the envy of the world, and is our home. Its future can be bright, as long as we take care of the things that have made it great.”
This week, a number of popular restaurant chains demanded that Theresa May ease “crippling” burdens caused by a perfect storm of soaring business rates, taxes and the weak pound.
The Department for Communities and Local Government said: “This government has announced the biggest ever cut in business rates — worth over £6 billion to businesses across the next five years. The revaluation means bills are accurate and fair and as a result three quarters of businesses will see no change or a fall in their bills — with 600,000 paying no rates at all.
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“London will benefit more than anywhere else in the country from the transitional relief scheme — 140,000 properties will be helped by almost £1 billion of support to ensure that no business is unfairly penalised.”
London’s deputy mayor for business, Rajesh Agrawal, said: “Thousands of firms in the capital are in effect facing 50 per cent increases in their business rates bills with barely six months’ notice. We need far stronger transitional arrangements to soften the immediate impact and we also need greater devolution over London’s business rates.”
