Call for business rates to be frozen as inflation hits 5 year high
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Inflation reached its highest level in five years in September whilst the Retail Prices Index stood at 3.9% in the month.
The British Retail Consortium (BRC) said the government must freeze business rates to avoid "misery on the high street".
Helen Dickinson, BRC chief executive, said the rate rise meant shops would be "struggling to survive" next year. The retail sector alone will have to pay an extra £273m in rates.
The hike comes after a business rates revaluation that took place this year, which saw rates rise by as much as 60 per cent for some businesses in London.
Dickinson added: "The consequences of today's RPI figures could be severe for many shops in a precarious position and struggling to survive. Consumers, already seeing household incomes eroded, will face further misery as the pound in their pocket buys them less at the checkout.
"For retailers this will be compounded if UK Ministers fail to act and stem the hefty near four per cent rise in business rates, which is set to add an extra quarter of a billion pounds to retailers' already unreasonable business rates burden."
She added: "For many shops this may be the last straw. Across the country, especially in economically deprived and vulnerable communities, the cost of failing to take action will likely be seen in yet more empty shops and gap-toothed high streets."
