A small shop on Stroud Green Road was charged £800 after mixing up its recycling, one of a string of costs squeezing Islington’s small businesses, councillors have heard.

Waste disposal fines, permit charges and van running costs that can top £2,000 were raised at a meeting of the council’s Overview and Scrutiny Committee, where one councillor singled out the cost of vehicle permits as a burden.

During the meeting Councillor Jonathan Ward said: “We’ve got an example of a shop who had a mix-up with their waste and paid £800 for their recycling. And they’re just a little shop on Stroud Green Road. I just don’t think that we should be fining people £800 for mixing up their recycling on the street. And it’s just a little local shop.”

Islington Council is being urged to ease the strain as concerns grow over rising costs and the impact of its own policies.

The council acknowledges the financial burdens small businesses face. It is piloting a High Street Rental Auction on Caledonian Road, which allows it to set conditions for businesses occupying vacant properties.

Kaya Chatterjee, head of the Local Economy Service at Islington Council, presented findings from recent studies of the borough’s town centres, including Nags Head, Finsbury Park, Angel and Archway. Common themes included the value residents place on independent businesses, the importance of the experience economy, and the need for safety and an improved public realm. The studies also highlighted challenges such as vacant units.

Discussions touched on the need for greater support for smaller businesses and for areas that are not currently major town centres. Suggestions included alternative delivery methods such as cargo bikes, and programmes to improve the energy efficiency of business premises.