Scrap the tables tax before it kills London’s outdoor dining boom

It is no secret that the hospitality sector in London is struggling under the weight of rising costs like national insurance contributions, business rates and alcohol duty.

But this is just the tip of the iceberg. The money sucking bureaucracy and anti-fun agenda seen in our Capital runs much deeper than these obvious charges.

Cafes, pubs, bars and restaurants are being plagued by a ridiculous pavement licence, known as the ‘table tax’, which charges them for putting tables and chairs on the pavement outside their premises. Most London boroughs are opting to charge the legal maximum of £500 for a new application and £350 for a renewal, with the table tax in Hackney needing to be paid every three months.

We’ve seen over 3,000 late night venues close since 2020 and is it any wonder even more are considering taking last orders for good?

The political leadership in London is, to put it politely, somewhat confused about its position on Al Fresco fun. Last year while the Mayor of London was announcing a £400k ‘summer street fund’ to encourage outside dining his Labour colleagues in Greenwich Council were ordering a19-century riverside pub to rip out its outdoor seating as it was considered ‘visual clutter’.

The hypocrisy is breathtaking: City Hall handing out grants with one hand while London Labour councils strangle businesses with costly ‘table taxes’ and red tape on the other.

The truth is that small grants like the summer street fund that sees the Mayor pick a tiny selection of ‘winners’ is not going to help the industry. Reforming the pavement licence system, on the other hand, would provide immediate relief for all business owners.

Most importantly, this intervention would provide the hospitality industry with much-needed support without spending a penny of public money.

It’s not just businesses that win when we encourage al fresco fun. Clearly, a thriving business is going to offer more competitive pricing and a better experience, but it goes further than that.

A thriving al fresco high street encourages customers to become a greater stakeholder in its appearance. Congestion, rubbish piling up, and anti-social behaviour matters more when sitting in an area at length as opposed to power walking through on the weekday commute.

Strong commercial businesses operating in streets build civic pride and stronger, safer local communities.

It is simple. More vibrant streets, more footfall, better high streets. This is what makes London feel alive, especially in summer.

Our small business owners don't need a one-off, bureaucratic "funding pot" that might run out by September to make it happen; they want permanent, universal relief.

So if the Mayor truly wants a vibrant London, he should stop the war on fun being waged by his own party’s councillors. Support the scrapping of the table tax and focus more on cutting red tape, rather than one-off spending gimmicks.

Don't create the problem and then pretend to fix it with a tiny subsidy. London’s hospitality sector doesn't need a leg-up from the taxpayer; it needs the government to get out of the way.

Scrap the table tax, bin the red tape, and let London’s businesses get on with making our city the envy of the world.

_

Emma Best AM is the Chair of the GLA Oversight Committee

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk