Small business owners trading from historic railway arches today urge transport bosses to halt their sale to protect local industry.
Network Rail stands accused of rip-off rent rises ahead of flogging off arches across the country later this year.
Cases uncovered by the New Economics Foundation think tank include a 92-year-old garage owner who ran his business for 60 years but was forced to quit when faced with a 500% rent rise; a motorcycle repair shop facing a 300% in-year rent hike after Network Rail took away their security of tenure; and a metals workshop facing a 300% rent rise backdated for the last three years.
In a letter to Transport Secretary Chris Grayling, the Guardians of the Arches campaign say: “We are committed and energetic businesspeople – motorcycle mechanics, café owners, furniture restorers, garage owners, textile manufacturers, bakers and much else besides – who work hard to make a living and provide a service.
“We are the beating heart of the places where we’re based, powering local economies and giving life and energy to local communities.
“But our future is in grave danger.”
One signatory, George Grant, who runs a garage business from a south London railway arch, said: “People in cities and towns all over the country rely on our businesses every day.
“We are the beating heart of our communities, but we’re being destroyed by this sale. Why is the Government allowing it to happen without any consultation?
“If the Government are serious about supporting entrepreneurs, they will put a stop to this sale which could make thousands of us extinct.
“We run businesses and know how to reach a deal.
“All we’re asking is that the Government halt the sale of our premises and talk to us about reaching a settlement for the future.”
Will Brett, of the New Economics Foundation, said: “Network Rail is publicly-owned - it’s the largest landowner for small businesses in the country, and that land is a public asset.
“If this sale goes ahead, thousands of businesses at the centre of their local communities will be thrown to the wolves of global capital, all for the sake of a one-off bump to the public finances.
“It doesn’t make any sense - if that land were kept in public ownership it could be leveraged for long-term economic and social gain.”
The business owners’ fight has attracted cross-party support including from senior Labour MP Meg Hillier, who chairs the Public Accounts Committee, and Tory backbencher Zac Goldsmith.
In the Lords, it is backed by Big Issue founder and crossbench peer Lord John Bird.
He said: “Railway arches and self-employed enterprising grafters have been entwined for decades.
“Network Rail are now trying to sell the arches, hiking up rents and starving out small companies.
“That must be opposed and fought vigorously. It matters enormously to all of us who want small enterprises to flourish and continue their work.”
A Network Rail spokesman said: “The sale of Network Rail’s arches will enable the company to raise funds to reinvest in much needed railway projects to expand and improve the railway network for the benefits of millions of daily users.
“The value of the arch estate was established some time ago and the suggestion that rent increases are being made to increase its value is simply wrong and would be entirely pointless.
“Rent reviews happen as tenancies expire which can be as long as seven years.
“We benchmark against similar commercial premises in the local area and aim our rents at the lower-end to make them competitive.
“Some areas have seen marked regeneration in recent years which can lead to increased rents but we will always do our best to stagger any increase.”