It's the first time in nearly ten years that firms being forced to close have outnumbered start ups in the capital.

Liberal Democrat MP Ed Davey told This Is Money:

"The complexity of tax regulations and all the restrictions that come with running a business are much more onerous on small shops than on supermarket giants."

The congestion charge covering part of central London was also criticised for affecting small businesses within the zone. It's feared that plans to extend the area westward will cause further problems.