Retailers’ concern over £480m-a-year hike in business rates bills ahead of Autumn Statement
The British Retail Consortium is among a coalition of leading UK organisations who have written to the Chancellor Jeremy Hunt urging him to freeze the business rates multiplier and extend existing reliefs for a further year at the upcoming Autumn Statement.
British Retail Consortium, UKHospitality, Association of Convenience Stores, British Independent Retail Association and ukactive are warning that businesses, jobs and the future of high streets are at risk without the measures.
The sectors combine to pay more than £10 billion in business rates a year. The inflation-linked increase to the business rates multiplier will cost retail businesses £480m and hospitality businesses £234m. An end to current relief will cost hospitality £630m and retail £750m.
In a survey of BRC members, 66 per cent of retailers responded that they were ‘very concerned’ about an increase in businesses rates, with 69 per cent saying it would place ‘significant pressure’ on the prices paid by customers.
A recent survey of UKHospitality members showed that 66 per cent of businesses would reduce investment, 61 per cent would raise prices and 41 per cent would reduce opening hours if rates relief was removed.
Members of ukactive reported that 75 per cent were ‘extremely likely’ to have to increase customer pricing in the next six months, with 88 per cent having already been forced to raise prices over the past year.
The joint letter warns of the ramifications of such dramatic increases in business rates stated: “An inflationary increase in the business rates multiplier and removal of reliefs would be disastrous for our sectors. It will mean business failures, job losses and boarded up properties in our high streets, denying people their livelihoods and their social pleasures.”
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Retailers are staring down the barrel of a £480 million-a-year hike in their business rates bills from next Spring.
“Such a hefty increase will threaten to put renewed pressure on retail prices, as well as block new investment in our town and city centres. It is essential that the Chancellor uses the Autumn Statement to freeze business rates and give our local communities a fighting chance to thrive.”
Andrew Goodacre, CEO of the British Independent Retail Association, added: “Independent retailers are finding life on the high street incredibly difficult.
“Significant increases in interest rates have reduced consumer expenditure and in the first half of 2023 21,000 independent businesses closed.
“The current 75 per cent retail discount on business rates must be retained as those smaller retailers cannot afford any increases in costs – many of them are still dealing with 10 per cent increases in their rateable values earlier this year.”
