Local Assembly Member
calls for the end of the
line for steep Network Rail
rent increases
Local London Assembly Member, Unmesh Desai AM, has written to the Chief Executive of Network Rail, Mark Carne, urging the company to put an end to excessive rent rises. His letter also encourages Network Rail to ‘work pragmatically’ with businesses to ensure they can continue to trade in the local area.
Mr Desai’s intervention comes after small businesses, located under Network Rail owned railway arches in East London, reported rent hikes of up to 350 per-cent.
In his letter, Mr Desai highlights that Network Rail’s treatment of local businesses is at odds with the sentiments expressed in a statement published on its own website, which claims that it is, “proud to have so many small independent businesses thriving on our estate providing a diverse range of offers to the public”.
Alongside steep rent rises, local businesses are also facing the pressures of higher business rates handed down by the Government.
Rates have been increased by almost 25% in the capital, whilst on average they have only gone up by around 10% in the rest of England.
Mr Desai recently visited businesses on Brick Lane with the London Assembly Economy Committee to hear their concerns about the issue.
The Mayor of London has also previously intervened on the matter, calling for the devolution of business rates so that they can be set at a fairer and more sustainable level for London’s SMEs.
Local London Assembly Member, Unmesh Desai AM, said:
“It is absolutely unacceptable that the livelihoods of local people are being unnecessarily placed in jeopardy by these disproportionate rent rises.
“A number of the businesses located under the arches have been reliable tenants to Network Rail for several decades, and have established themselves as an integral part of the local economy.
“We have quite rightly seen incredulity and outrage from business owners in the East End community, and across the network of arches in London, who have also been hit with crippling business rate rises from the Government.
“This is why I have joined other local politicians and campaigners in calling for Network Rail to remove the insurmountable pressures they have placed on traders, and immediately put an end to the exorbitant rent increases”.
ENDS
Notes to editors
-Businesses located under Network Rail owned railway arches in East London, reported rent hikes of up to 350 per-cent;
-Network Rail state on their own website that it is, “proud to have so many small independent businesses thriving on our estate providing a diverse range of offers to the public”;
-The latest data from the Federation of Small Businesses (FSB) reveals that business rates have been increased by 23.7% in the capital, whilst on average they have only gone up by 9.6% in the rest of England;
-The Mayor of London has previously called for the devolution of business rates;
-Unmesh Desai AM is the London Assembly Member for City and East (covering Barking and Dagenham, Newham, Tower Hamlets and the City of London).