RISING rents and business rates are killing off small companies, according to the owner of an independent Hampstead cafe that is closing its doors after 11 years.

Kathy Ali, 59, the joint-owner of Simply Scrumptious in Flask Walk, said it was no longer possible to make money once you took away costs, including rent which is set to rise to £38,000 next month, annual business rates, water, electricity and payment to Camden Council for putting out tables and chairs

“This is why independent shops all over the country are closing,” she said. “Quite a few places in Hampstead are struggling now. After 11 years, you have to be making some money, and we’re just not. I don’t know what’s the matter with Hampstead nowadays, it’s got no soul. 

“It’s just become full of chain stores, phone shops and estate agents. There are barely any independents left.”

The cafe, which was bought by Mrs Ali and her husband Ahmed in 2003, has been a firm favourite in the area, selling coffee, cakes, sandwiches and hot food. 

However, their landlord Andrew Usiskin explained that because of their “amicable” relationship, he had in fact lowered the rent to £32,000 for one year, after the cafe’s 10-year-lease expired, as well as letting them pay in monthly instalments to help their cash flow.

He said: “I know that Ahmed Ali works extremely hard and it’s quite sad that this is happening.” 

He added: “I consider myself a reasonably fair landlord, that’s why I reduced their rent after the first 10-year lease expired.”

Although Mrs Ali felt it would be hard for the landlord to fill the space after their lease expired on June 30, Mr Usiskin said that he has been “inundated with offers” for the premises “at asking price” and that he already has a tenant lined up for the end of the month. 

As he had lived in Hampstead for 40 years and owns a number of properties in Flask Walk, Mr Usiskin claimed he is “very careful” about who he chooses to lease to, adding it will not be “a phone shop or an estate agent”. The price was just “the commercial rate for the premises”, he said.

An informal closing party to thank the community for their support will take place at the cafe on June 22.