Warning: Chancellor Jeremy Hunt
Jeremy Hunt has been urged by some of the country’s biggest retailers to avoid a £400m business rates hike that they say risks undermining the fight against inflation.
Bosses from Marks & Spencer, Greggs, Harvey Nichols, Tesco, Sainsbury’s and B&Q are among 44 who have signed a letter asking for rates to be frozen.
The letter, coordinated by the British Retail Consortium (BRC), said firms had been battling to contain price rises despite costs soaring over the past 18 months – taking a hit to profit margins.
They said that effort was ‘starting to bear fruit’ with shop price inflation falling from a peak of 9 per cent in May to 6.9 per cent in August.
‘An inflationary increase to business rates would add over £400m to the industry’s cost base next year, severely undermining this progress,’ the letter added. ‘It would also have a much wider impact, threatening the viability of many shops and hindering the industry’s capacity to invest.’
Business rates normally go up in April – using the previous September’s inflation rate. However they have been frozen for three years since the pandemic.
The BRC letter said that, based on inflation this month remaining higher than 6 per cent, a hike next spring would add more than £400m to retailers’ business rates bills.
A BRC member survey found that, for 59 per cent, such a rise would place ‘significant’ upwards pressure on prices for customers.
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