There are few things Brits love more than sipping a cool beer in the - admittedly rare - summer sun.

But some businesses have claimed that simple pleasure is at threat due to Croydon Council plans that have been likened to a "tax on sunshine".

More than 700 people have signed a petition against proposals to change the formula used to calculate charges businesses pay for street trading space.

The new formula would see traders pay for outside space by the square metre, replacing the £89 annual flat fee currently charged - a move that would see some rates increase by more than 2,500 per cent.

Bars and restaurants that have tables on public land and shops with outdoor fruit-and-veg stalls would be among the businesses affected.

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Saif Bonar, owner of town centre cafe-bar Matthews Yard, launched the petition after calculating his fees for providing outdoor seating would rocket to £2,496 a year under the new charges.

He described the increase as “ unrealistic and unfair” and warned it would force him to remove outside seating from Matthews Yard “in the rare opportunities our weather affords us” - prompting social media users to brand it a “tax on sunshine”.

He added: "It doesn’t make sense that we pay £400 a year to get people drunk and make a profit on alcohol, but pay £2,000 to put chairs outside.

“When there’s so many other things getting a subsidy and a grant, it doesn’t make sense to hit something that has such a positive impact on the street feel in Croydon."

But council leader Tony Newman defended the proposals and branded the previous Conservative administration "incompetent" for not introducing the charge.

He said: “It’s [currently] a pitifully low charge in place in terms of the losses and prices, and the real story is how residents have been subsidising huge businesses in Croydon for eight years. It’s a scandal.

"Was it a deliberate policy, or was it incompetence?”

He acknowledged the charges represented “a big leap in one go” for small businesses and said the council were looking at capping the increase.

 

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Saif Bonar, owner of town centre cafe-bar Matthews Yard, launched the petition after has calculating his fees for providing outdoor seating would rocket to £2,496 a year under the new charges.

Councillor Newman said discussions had been held with Matthews Yard in the hope of finding a “satisfactory solution”, but refused to be drawn on how much he believed would be an acceptable charge.

He added: “I don’t want to put a number out there. I hope we can find a middle-ground. But I’m not hiding from it - these rates will increase.”

Current street trading charges are thought to bring in about £20,000 a year, while enforcement of street trading licences costs about £200,000, according to the council.

If approved, the new charges would come into force in April, although there would be a 75 per cent discount for the first year.

Conservative opposition leader Tim Pollard warned the council to "think through the consequences of the policy.

He added: “If we were taxing big multinational corporations I might have some sympathy with Coun Newman, but the vast majority are sole traders. And while the economy is improving, the vast majority are not doing fabulously well.

“If there is a genuine business case for businesses paying more, I would like to see it. But if there is one, you should give people time to adapt. It will push some businesses over the edge.”

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