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Category: Economy

Created on Thursday, 27 October 2011 16:16

Written by Naida Ally

The new retail prices index (RPI) inflation figure suggests the possibility of a business rate increase of £350 million for retailers next April, which is the equivalent of at least 16,000 jobs in the sector.

As a standard, business rates in England, Scotland and Wales rise every April in line with the previous September's RPI. The figure has been announced as 5.6 per cent, the highest for 20 years.

The British Retail Consortium (BRC) has calculated an increase of this size would add £350 million to retailers' business rates bills at a time when the health of the high street is already under the spotlight.

BRC director general Stephen Robertson said: "Basing business rates rises on the previous September's RPI is a lottery and retailers have just seen a losing number come up.

"With trading conditions staying tough, an increase on this scale would have a hugely detrimental effect on retailers' ability to invest and create jobs.

"The Government should impose a much lower increase and, for the longer-term, review the system so that future increases are more predictable and more affordable."