The release of new CPI figures will mean a business rates increase for retailers in the UK.
The CPI figures showed a 1.7% increase which will, in turn, see retailers spend an extra £137m in business rates from April of next year.
Dominic Curran, property police advisor at the British Retail Consortium, thinks the increase will mean retailers could struggle to invest in their businesses.
Speaking on Wednesday, he said: “Today’s CPI announcement means retailers will have to cough up an extra £137 million from April. Already, while retail accounts for 5% of the economy, it pays a massive 25% of all business rates.”
Adding: “This £137m increase will reduce the ability of retailers to invest in their business, their staff and their shops. The Chancellor must take action on rates in the forthcoming Budget and scrap ‘downwards transition’, which takes £1.3 billion from retailers and uses most of it to subsidise rates in other industries. Meanwhile, with the retail industry facing store closures and jobs losses, the Government should freeze the impending business rates increase.”