London pleads for terror 'rebate

London businesses are asking for a 'rates rebate' to help them recover from the economic impact of last month's terrorist attacks on the capital, writes James Robinson. They are supported by Westminster council.

A similar scheme was put in place in Manchester following the IRA bombing of the city centre in 1996.

Business rates in the West End, which the council collects, are expected to raise nearly £1bn for the Treasury this financial year. Business in London's West End, including retailers, hoteliers and restaurants, say that trading has been poor since the attacks of 7 and 21 July, and want the government to kick-start London's economy. They claim tourist numbers have fallen and shoppers are staying away from central London, choosing to go to shopping centres or use local stores in suburban high streets. Some London hotels and theatres are offering discounts to woo customers.

Retail sales figures last week showed signs of a continued consumer slowdown, although there is no evidence the bombings have made it worse.

Businesses also want London Mayor Ken Livingstone to lift the £8-a-day congestion charge in September to encourage people to return to the West End. Westminster claims that small and medium business have been hit particularly badly. Failing a lifting of the charge, it wants the Mayor to reduce the number of hours when it comes into effect to encourage more people to travel into central London.

Council leader Simon Milton says in a letter to Gordon Brown: 'The business rates collected from businesses here in central London are re-invested to support areas all over the UK. But, at the current time, it is central London that needs additional support; to enable our capital to get back up and running in the wake of these terrorist atrocities. I believe a temporary reduction in business rates would send a clear message of support to London businesses'.