Fees for new market traders wanting to sell their wares in central London could be about to soar by 900%.

Westminster City Council, as part of an overhaul of its fee structure for street traders, has proposed putting up the cost of applying for new permanent licences in the borough to £964 for non-food traders.

Non-food traders currently pay £96 for new applications. If approved, the rise would amount to a 904% increase. Other costs, however, would fall.

Weekend pitch fees could increase by up to 90% under proposals put forward by the cash-strapped flagship council.

The measures, potentially affecting traders in the neighbourhoods of Soho, Westminster, Marylebone and Maida Vale, would raise daily pitch costs almost across the board, with Saturday rates jumping from £22 to £42 for some vendors.

The borough is battling a drastic cut to its finances following the Labour Government’s reforms to local government support.

Westminster City Council announced last month it will lay off 520 people in the town hall’s most brutal ever staff cuts in an attempt to balance the books.

The Conservative-led authority will lose about 15% of its 3,720-strong work force in a bid to save £29 million from its budget.

It comes after a so-called Fair Funding Review by ministers that is expected to mean a £100m reduction in Westminster’s funding over the next three years. Council tax could rise by as much as 75% in a bid to plug the shortfall.

Officers told the council’s licensing committee that they are currently running a deficit of around £2.4m across their street trading budget.

Even with the price increases, the council would still be facing a £1.6m black hole across the portfolio, they said.

The local authority is currently analysing responses to a consultation which finished at the end of September.

Any approved changes will come into force in January 2027.

One unnamed market trader told the committee that the council was asking for “an enormous amount of money.”

“There is a state of emergency virtually in this country with the economy. All of our produce has gone up,” she said.

“Yes, there needs to be an increase. You have to make a living, money for the council and we have to make money, but frankly it is too much.”

Another vendor, who trades on Berwick Street, Soho, said: “It is too bloody soon to be posing costs this high on traders who are really struggling to get through.”

Vendors in Westminster currently pay a daily pitch fee of £22 to the council.

Under the new proposals, these charges would be different depending on the day of the week, location and the type of produce being sold.

They will see their daily charge rise to between £39 to £44 depending on which day they are trading.

Maida Hill Market traders will see the least increase to their fees, with hot food and takeaway vendors set to pay between £31 and £36 each day of the week.

Non-food traders will pay the lowest amount in their area, followed by fresh food and finally hot food and take-aways.

Administration costs are also set to balloon for people who do not yet have a permanent licence to trade at Westminster markets.

Currently a new licence to sell non-food items costs £96, with a 50% discount for new businesses and 20% for Westminster residents.

Under the proposals this would increase to a whopping £964, although the cost of varying current licences would drop.

Isolated pitch licence fees would also decrease – by nearly 60% for some types of traders.

Temporary licences and casual trader registration would be less expensive than a permanent licence.

A 5% discount for those who pay by direct debit will continue under the scheme, as well as reductions for the seasonal trade of ice cream.

The council has been approached for comment.