The Retail Price Index (RPI) for September rose 3.2% – and the British Retail Consortium (BRC) said this figure will be used to calculate next year’s increase in the business rates.
New analysis from the BRC shows that this increase means retailers will have to pay £3.44 in business rates for every £1 they pay in corporation tax in 2014. That’s a rise from £2.48 in 2005 “and demonstrates just how radically our tax system has changed and how hard our high streets are being hit”.
BRC director general Helen Dickinson said: “Across the country, retailers are adding up what this increase in the RPI will mean for the cost of their business rates next year. Many will be wondering whether they will be able to stay open.
“At the BRC we have spoken to retailers who will be forced to close shops because of the increase and many that have decided not to open new ones. This tax increase is likely to cost communities across the country 19,670 full time jobs. It is clear that the business rates system is no longer fit-for-purpose. It requires complete reform.”