Retailers face a near £200m hike in business rates unless the chancellor acts on calls for a freeze, it has emerged.
With the Consumer Price Index measure of inflation rising to 2.5% last month, businesses in England would see a £758m rise in their rates bills next year, according to analysis by industry experts Altus Group, of which £194m would fall on firms in the retail sector.
The figures come amid a wave of high street closures in recent months with Homebase the latest big traditional retailer to lurch into crisis, joining the likes of House of Fraser, M&S, Toys R Us, Poundworld and Maplin.
The rise will depend on how inflation stands next month, with organisations such as the BRC campaigning for chancellor Philip Hammond to freeze rates for two years whilst a review of the system is carried out to make it fairer on retailers.
Read more: New government panel formed to ‘rescue the high street’
Until last April business rates were pinned to the Retail Price Index, but despite the government changing this to the lower Consumer Price Index retailers could still be hammered by increases.
“With our high streets engulfed in crisis, and Brexit uncertainty hurting manufacturers and the services industries, the chancellor should be bold in his autumn budget later in the year through an unprecedented stimulus by freezing rate rises,” said Robert Hayton, head of UK business rates at Altus Group, calling on the chancellor to take action.
“Soaring business rates have battered high street stores already struggling to compete with online giants.”
Last week Hammond said the government was considering unilateral action to level the playing field between bricks and mortar companies and online companies such as Amazon.
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