Although you would hardly be fooled into thinking Sutton was the next Canary Wharf it may still come as a surprise to know that the borough has the second lowest number of new businesses in London.

Figures released to MP Paul Burstow show that, with its 525 new VAT registrations in a year, Sutton had the fewest new businesses in 2006 in London - second only to the borough of Barking and Dagenham.

"That doesn't surprise me," said Michael Norman, owner of new dry cleaner Press 2 Dress in Cheam Road.

"Business rates are so high here. There's a lack of places for new outlets to rent and if we apply for start-up grants we're told we can only have them if we're setting up in a deprived area. If I was starting a business in Peckham I'd be laughing," he said.

Sutton's geography may be one reason why the rate is so low, explained Chris Wood of Sutton Chamber of Commerce.

"East London is perceived to be an area of investment because of the Olympic sites and the Crossrail. Also, we don't have a business district in Sutton nor do we have any big businesses here already. Businesses tend to attract their own kind, it's the snowball effect," he said.

But both men agreed that Sutton was a good place for business.

"It has an extremely pleasant environment, good transport links to the airports and central London," said Mr Wood.

To overcome the problem the chamber has been encouraging businesses in its twin towns to set up branches in Sutton. The council and Mr Burstow have also been lobbying the Government to get a fair deal for Sutton in the distribution of grants.