18 LCCI in the news
Adapt, invest and grow
by Vittoria Zerbini
This summer saw drastic political and climate changes and LCCI took the opportunity to continue championing policies to strengthen the resilience and competitiveness of London ' s business community. Coverage on BBC Radio London highlighted the Chamber ' s concerns over the impact of extreme heat on consumer behaviour and business operations. At the same time, LCCI welcomed proposals for greater fiscal devolution in The Standard, and a targeted business rates relief for pubs, clubs and live music venues while emphasising that wider reform is needed to address the cost pressures facing businesses and SMEs across the capital.
Doing business in a heatwave
Following the publication of new data showing that UK high street footfall fell by 6.2 per cent year-on-year in June, LCCI chief executive Karim Fatehi OBE spoke to BBC Radio London about the impact of the recent heatwave on London businesses. The figures highlighted how extreme temperatures are changing consumer behaviour, with more people choosing to stay
indoors, reducing footfall and placing additional pressure on retailers, hospitality venues and SMEs. Fatehi said that extreme heat is also creating wider operational challenges by disrupting transport networks and affecting how people work and travel.
Referring to estimates that the 2022 heatwave cost London ' s economy £ 1.5 billion, he stressed that without more resilient infrastructure and reliable transport, climate-related disruption will continue to affect productivity and businesses ' ability to trade normally.
Greater fiscal devolution
Following reports that the government is considering giving London greater control over taxation and public spending, Fatehi told The Standard that further devolution would allow the capital to unlock investment and deliver long-term economic growth. Proposals under consideration include allowing London to retain a greater share of business rates and other tax revenues to fund priorities such as transport, housing and infrastructure. Fatehi OBE argued that London is a net contributor to the UK economy and that giving the capital greater fiscal autonomy would enable it to respond more effectively to local challenges while continuing to support national prosperity. He concluded that any new powers should be accompanied by a long-term funding settlement that provides businesses with the certainty needed to invest and grow.
Business rates relief
Following the government ' s announcement of a 20 per cent reduction in business rates for pubs, clubs and live music venues, Karim Fatehi OBE welcomed the measure as a positive step for many of London ' s hospitality businesses. The policy is expected to save the average eligible venue around £ 1,100 a year, providing some relief for a sector that has faced rising operating costs in recent years. However, Fatehi told the BBC, many businesses across the capital, particularly SMEs, continue to face significant pressures from higher employment costs, inflation and an outdated business rates system that discourages investment in physical premises. He concluded that while the targeted relief is welcome, broader reform is needed to support businesses across the wider hospitality sector and create conditions that encourage long-term investment and growth.
Vittoria Zerbini is media and policy assistant at LCCI