Responding to the latest CPI inflation figures, which show headline inflation falling to 1.7%, Kris Hamer, director of insight at the British Retail Consortium, highlights that the September CPI will determine next April’s increase to business rates, meaning the retail industry will face paying an extra £140m.
“For too long, the gradual increases to business rates have been contributing to the decline of our high streets and town centres, damaging investment and preventing the creation of new shops and jobs,” comments Kris. “This effect could be compounded if other business taxes are increased at the Budget.”
He believes that the Chancellor should introduce a Retail Rates Corrector – a 20% downward adjustment in business rates paid on all retail premises – to redress the imbalance that sees retailers paying a higher proportion of their profits in taxes of almost any industry.
Commenting on the decrease in inflation, he points out that this was driven by lower energy costs, as well as easing inflation of clothing and footwear. “With Ofgem’s lifting of the energy price cap at the start of the month, October’s figure – published next month – will reveal an inflation rate closer to the 3% mark, dampening real wage growth over the all-important Golden Quarter.
Top: The British Retail Consortium (BRC) says the Chancellor needs to introduce a 20% downward adjustment in business rates, paid on all retail premises.
