The official group representing Conservative MPs in the capital is drawing up demands for a series of immediate concessions to soften the blow to the worst-hit firms this year.
But in the longer term, they say the rent-based valuation system that has triggered far bigger rises in London and the South-East than in other regions should be abandoned altogether.
A number of London MPs spoke out against the unfairness of the changes last night at an 80-minute private meeting with Philip Hammond, which was dominated by the issue.
Stephen Hammond, the former minister for London and MP for Wimbledon who chairs the 27-strong London group, told the Standard: “There remains among London MPs widespread concern about the scale of business rates rises here.
There are a number of measures we hope the Government will be looking at to help soften the impact of these rises.”
Former minister Bob Neill, who urged help for independent shops, said the Chancellor “appeared to be listening”.
The London group is seeking a meeting Sajid Javid, the Communities Secretary, next week where detailed demands will be put forward.
Among proposals being made by the MPs are:
- Immediate relief for specialist and independent small shops that could be driven off the high street by sudden rises to rates of 25 to 100 per cent.
- Scrapping rate cuts that are due to be enjoyed by corporate giants like Heathrow airport and the big four supermarket chains to fund help for smaller businesses.
- Transitional relief for “hot spots” like Wimbledon Village, the West End and London’s historic clubs where some owners are facing a doubling of rates bills.
- Axing the new system as soon as possible in favour of a revenue or profits-based system, which would favour high street traders with higher overheads.
James Berry, the MP for Kingston & Surbiton, said shopkeepers were baffled by why one trader would be hit by a 25 per cent rise while the shop next door was served with just a one per cent rise.
“In the long run, the Chancellor should sign the death warrant for this system and base rates on business revenues,” he said.
A Treasury source said the Chancellor was “open to listening to the issues of the hardest-hit, but he didn’t make any commitments either way”.
Mr Hammond confirmed that online firms such as Amazon presented “challenges” to taxation.
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