Ahead of 1 April, when the new business rates ushered in by Chancellor of the Exchequer Rachel Reeves come into effect, small businesses in Soho have been nervously anticipating the increase.
The changes, announced in the November 2025 budget, involve increases to the rates due to be paid, a change which puts many small and vulnerable businesses under threat.
Business rates, also known as ‘non-domestic rates’, are a tax on property owned by businesses, determined by the rental value of their property.
Michele Wade, maître d’ of Maison Bertaux, the oldest patisserie in London, said: “It’s like a bonfire of increases: the tables and chairs licence, the rubbish collection, the employment tax, and even the minimum wage going up, which even if you think it’s a good idea, it’s going to make a difference.”
“When it’s just one thing, you can manage”, she added, “but right now it’s not one thing: if you put all these things in the bonfire, it’ll all go up in smoke.”
Amid concerns about the changing character of Soho and the struggles independent businesses face there, proper handling by the government of these rate increases could prove crucial.
In just the last few years, Italian Deli I Camisa and Sons, charity members club House of St Barnabas, and nightclub G-A-Y have all closed down due to financial troubles.
“The government have to ask what sort of character they are looking for in small areas of central London,” Madame Wade said.
“What are they trying to do with the hospitality industry? The government wants tourism, but if you can’t offer the tourists a good experience because you’re stretched, then the tourists won’t come.”
Maison Bertaux’s rateable value is due to rise from £53,500 to £62,000 on the first of next month, meaning an increase in rates is inevitable, even with the government’s measures to protect small businesses, as well as its transitional relief scheme, designed to stagger the hike.
A spokesperson for HM Treasury said: “We have the right economic plan – we’re reforming business rates to back the hospitality sector with a £4.3bn support package to limit bills rises, alongside capping Corporation Tax at 25%, cutting red tape and taking action on the cost of living to boost the sector.
“We’re also cutting the business rates tax rate by 5p for high street businesses, funded by higher bills for the top 1% most expensive properties.”
Madame Wade explained how the uptick in license fee for outdoor dining from the reduced Covid rate of £350 for 6 months to £500 was also not easy to manage.
“Resilient is a funny word, because how resilient can you be? We’re expected to shell out and keep going, and it’s hardly possible,” she said.
“It’s not very good for anyone at all, is it? It’s not good for us and it’s not good for the customer.
“You don’t want to keep cut, cut, cutting staff because that diminishes the experience: it becomes narrower.
“During Covid the customers were very kind and helpful, but there’s only so much you can ask of people.”
Featured image credit: Raluca Bejanarue
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