Retail, car showroom and industrial type businesses most affected by Gallows Corner upgrade works will receive backdated business rates adjustments in recognition of prolonged disruption, following sustained intervention by local MP, Julia Lopez, and her team.

The decision comes after months of representations by Hornchurch & Upminster MP, Mrs Lopez, to the Valuation Office Agency (VOA) and Mayor Sadiq Khan after construction delays were confirmed back in September, leaving local firms facing ongoing disruption well beyond the original timetable that have led to huge financial losses.

Working closely alongside affected firms, Mrs Lopez has repeatedly raised concerns that businesses have faced reduced footfall, access difficulties and uncertainty, while continuing to pay full business rates, despite the works overrunning.

Alongside her direct engagement with the VOA, Mrs Lopez also repeatedly pressed the Mayor of London’s office and Transport for London to formally make representations to the VOA themselves in support of affected businesses, arguing that rateable values should properly reflect the exceptional and prolonged disruption they have experienced.

This led eventually to VOA officials visiting the site this month to see for themselves the extent of the disruption.

The rebate will provide some financial relief to eligible businesses, although Mrs Lopez has stressed that she has been advised it will not compensate for the full scale of losses incurred during the extended construction period.

Havering Council will inform affected businesses about changes to their rateable value and administer any changes made.

Commenting, Julia Lopez MP said:

“Local businesses around Gallows Corner have been living with disruption for far longer than they were originally told to expect. Many have seen trade suffer through no fault of their own, while still facing rising costs and uncertainty. For too long, the Mayor failed to take this seriously. I am glad the VOA itself has come over to the site to see for themselves the extent of the pain firms are dealing with.

“This business rates rebate is a recognition that the delays have had a real and measurable impact. It will not undo the losses these businesses have faced, but it is support they would not have received without sustained pressure and representations on their behalf.

“I will continue to press for fairness for local firms and for greater accountability from those responsible for delivering this project.”

Mrs Lopez has also raised concerns about the continued lack of clarity over when the works will be completed. Despite repeated requests, Transport for London has so far only indicated that the scheme is expected to finish in “Spring 2026”, without providing a more precise timetable.

In their latest January newsletter, TfL confirmed that the works are now progressing in line with their new timeline, however stopped short of providing a specific date.

Julia added:

“It’s not just firms but local people who are being affected with school runs, hospital appointments and just getting to and from home. I am continuing to push TfL for a firmer completion date and regular updates, to stop everyone being left in the dark.”

Mrs Lopez has confirmed she will continue to press TfL and the Mayor of London’s office for clearer timelines for a completion date on the project.

Read the full response from the VOA below:

We can confirm that we will applying temporary allowances to retail, car showroom and industrial type properties. We are not proposing allowances at this time for offices, telecommunications sites, advertising rights.

Where ratepayers have an outstanding ‘Check’ case we will apply the allowance and write to confirm the outcome of the Check.

Where ratepayers have an outstanding ‘Challenge’ we will contact them to discuss this with them offering to apply the proposed allowance in the first instance.

Where no Check of Challenge has been submitted we will alter the rating list and write to the property address confirming this. It is expected all reductions will be applied within the next two weeks approximately.

Temporary Nature of Allowances

Temporary allowances will be applied effective 23/06/2025 which I understand is the date the flyover closed. The allowances will be reviewed and removed when the works have substantially completed, for example when the roundabout and other major road closures end – this would of course be subject to the facts on the ground.

Southend Arterial Road

20% reduction in RV to properties fronting Southend Arterial Road between Gallows Corners Motors and former Tile Giant unit reflecting the severe access to their retail frontages.

10% reduction in RV to all other properties on the same estate, south of the A12 and between Southend Arterial Road and Bryant Avenue reflecting access issues and impact of traffic/diversion routes.

Ashton Road, Ashton Gate and Tonbridge Road

5% reduction in RV to properties on the Ashton Road and Tonbridge Road estates reflecting increased traffic and diversion routes.

We have also current in contact with Havering Council who I understand may be able to write to affected ratepayers to explain that allowances will be temporary, applying from . We are compiling an exact list of rating assessments that are in scope for an allowance and will be sharing this with the Council.

Impact of Transitional Relief

Its important to note that the Rateable Value is only one element determining the rates payable by a given ratepayer. In particular some ratepayers will already be affected by the Transitional Relief scheme where their Rateable Value increased or decreased significantly at the 2023 Revaluation. This may mean that a percentage reduction to their Rateable Value may not result in a corresponding decrease in their rates bill. Ratepayers may wish to contact Havering Council if they have questions about the calculation of their rates bill.

2026 Revaluation

Draft Rateable Values effective from 1st April 2026 were published on the VOA’s website on 26th November 2026. The proposed allowances referred to above will also be applied to the 2026 Rateable Values and ratepayers will receive a letter confirming this at the same time their 2023 Rateable Values are amended.

I trust the above is clear but if you have any queries please feel free to contact me by email or telephone.

Thank you for your assistance in helping us understand the impact on local property occupiers.

Kind regards