More than 20 per cent of London’s businesses made use of the Government’s business rates holiday during the Covid-19 pandemic, saving a total of £3 billion.

Around 73,000 retail, leisure and hospitality businesses across the capital made the most of the scheme, which provided a 100 per cent reduction in business rates for the tax year to help ease the financial burden of lockdown restrictions.

However, with the scheme set to end at the end of March, London Mayor Sadiq Khan has called on the Government to extend support for businesses to prevent them falling off “a financial cliff edge”.

Mr Khan said: “London’s businesses and workers need further action in the forthcoming budget to protect jobs. Current plans to end the business rates holiday in March and then the furlough scheme in April create a huge financial cliff edge for employers. Without the certainty that support will remain in place for as long as it is needed, many more businesses could decide to cut their losses and close permanently now.

“Even with the rollout of the vaccines, economic activity in London – whether it be footfall on our high streets or international tourism – won’t simply return to pre-pandemic levels overnight, and it’s essential the Government continue to support businesses through the rest of the year. Supporting employers to keep people in work over the coming months will be integral to a successful economic recovery from Covid.”

By far the biggest savings came in the borough of Westminster, where more than 7,000 businesses saved more than £970 million through the business rates holiday. Meanwhile in Haringey, almost half of all eligible businesses made use of the scheme.

Despite the success of the vaccine rollout so far and hopes that lockdown restrictions may be eased in the spring, London’s business leaders have also warned that the economy will not recover straight away and have backed the mayor’s call for further support.

Richard Burge, chief executive of London Chamber of Commerce and Industry, said: “Extension of the VAT and business rate relief periods would show government understands that our economy will not fully recover until vaccination rollout is complete and London’s tourism and global economy recovered – which will be beyond spring realistically.”