Sadiq Khan has faced calls to provide fresh business support measures to small traders operating out of London’s Tube stations, amid reports that some have been forced to rely on food banks in recent months.
Greater London Assembly member Emma Best told the mayor yesterday that reduced revenues due to the Omicron wave of Covid-19 had pushed traders, thousands of which are Transport for London (TfL) tenants, to the point “where they do not see a way forward”.
Speaking at the first Mayor’s Question Time in the GLA’s new Crystal building in Canning Town, Best said Khan should give businesses a “one-stop shop” to apply for support, saying existing measures had been “inconsistent” throughout the pandemic.
TfL acts as a landlord to around 2,500 small businesses which operate at transport hubs across London.
The operator gave full rent relief to tenants for the first three months of Covid-19 in 2020, while rent freezes and other support measures throughout the pandemic have cost the body £37m. However, business groups representing traders such as Guardians of the Arches say more needs to be done.
In response to Best, a Conservative, Khan accused the central government of “making it difficult” for Transport for London to be a good landlord.
He said that as part of its push to force the operator to adopt a new funding model, the government wanted TfL to generate more revenue from its tenants, effectively squeezing small business owners.
TfL relies on travel fares for about 70% of its revenues. However, with reduced travelling during the pandemic, it has been told to increase its revenues from other sources, including its tenant base.
Khan said: “I find it astonishing that this member doesn’t know the financial challenges TfL faces. More and more tenants across our city will suffer the consequences of TfL’s… managed decline scenario.
“We need your help to say to the government, ‘stop bashing TfL and [stop] encouraging us to bash those tenants’. Stop making it difficult for us to be a good landlord.”
He added that TfL was looking to establish a “one-stop shop” so that tenants could approach one department in requesting support, rather than the fragmented system that currently exists.
However, he continued, the operator would continue to tailor its support for struggling businesses. “A one-sized approach [for financial support] is not sensible because different tenants have different needs.”
To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews
