Revo demands 2% cap on business rates rises in joint business group letter to Chancellor.26 October 2017
Responding to the latest Retail Price Inflation (RPI) figures which could lead to an additional £300 million being added to the tax bills of UK retailers, Revo has called for immediate action in the November Budget alongside key business groups in a joint letter to the Chancellor.
September’s 3.9% rate rise will be used to determine the increase in business rates next April, and Revo is calling on Government to implement a 2% cap, in line with the Bank of England’s target rate for inflation.
While the Government has committed to moving business rates to CPI indexation in 2020, UK plc is already suffering under the weight of the highest property taxes in the OECD, putting British business at a distinct disadvantage, and businesses are still recalibrating following the impact of the latest delayed revaluation.
Ed Cooke, Chief Executive of Revo, said:
“Business rates remain a fundamental barrier to growth in the retail sector at a time when Britain needs more than ever to demonstrate that we are open for business. Government must do more to solve the inequity of taxes placed on our built environment at a time of profound political and economic upheaval. The Chancellor should act with immediate effect in the upcoming Budget by capping any rises to 2% - his predecessor responded to calls for a cap when inflation was around the same level in 2013, so there is a clear precedent for this.”