Cafés in Greenwich Council’s parks are set to be asked to pay for their own gas, electricity and water bills as part of the town hall’s £33 million cost-cutting programme.
One councillor said he knew of a cafe that would struggle if it had to pay for its utilities as the issue came up before a panel scrutinising the new budget last week.
The council thinks it could save between £50,000 and £64,000 a year, but councillors on the overview and scrutiny panel said they were worried that the small businesses would struggle with the costs.
“I’d rather have a cafe there and not get the 50,000 savings than have empty premises that essentially aren’t viable,” Labour councillor Nick Williams said at the meeting on February 20. Councillors are set to approve the new budget, along with a 4.99 per cent rise in Greenwich’s portion of council tax, at a full council meeting on Wednesday.
Adel Khaireh, the council’s cabinet member for communities, leisure and culture, conceded that there was a risk that some businesses may not be able to afford the extra costs and said that help would be on offer.
“You’re right, if they’re not going to be able to pay it, they’ll just close the shop,” he said. “So we’re going to make sure that we look at how it’s manageable and achievable as well. But in the current finances that everyone’s going through, you know, there is some leeway [in what] people have to contribute towards electricity, gas, and water.”
The Conservative opposition leader Matt Hartley said: “I’m aware of one, who I won’t name because I don’t have permission to, who believes they may have to cease operating if that’s introduced.”
Khaireh said: “We would have to take it case by case and look at their performance, how much their income they bring in and how much it’s working and how busy it is. Then we can make a judgement on what can be done here.”
He added that the council could put businesses on its own electricity contracts to save them money.