CBI warns of April rates hike

The CBI has warned that the September’s RPI figures could be a prelude to a jump in business rates in April 2014.

Following the release of the Retail Prices Index (RPI) inflation figures at 3.2 per cent, the CBI said this is likely to have a knock-on effect on the UK’s already-high commercial property taxes.

Katja Hall, CBI chief policy director, said: “This level of RPI could lead to another business rates hike in April. We already have one of the highest commercial property taxes of any EU country, so the government must step in at the Autumn Statement to limit next year’s business rates increase at 2 per cent.”

Hall added: “We then want to see a full review of the system to explore options for longer term reform.”