Jeremy Hunt urged to scrap 'disastrous' business rates rise in Autumn Statement

British Retail Consortium, UKHospitality, Association of Convenience Stores, British Independent Retail Association and ukactive are warning that businesses, jobs and the future of high streets are at risk without the measures.

In the 2022 Autumn Statement, the business rates multiplier was frozen for 2023/24 on the grounds of protecting affected businesses from “headwinds of rising global inflation”. It was the third consecutive year of a freeze after inflationary challenges followed the pandemic. But currently, business rates are planned to increase in April 2024 in line with the 6.7 per cent inflation figure recorded in September.

Representatives of the sectors who have written to the Chancellor say they collectively pay more than £10bn in business rates a year.

If it goes ahead as planned, the inflation-linked increase to the business rates multiplier is expected to cost retail businesses £480m and hospitality businesses £234m. An end to current relief will cost hospitality £630m and retail £750m.

In a survey of BRC members, 66 per cent of retailers responded that they were ‘very concerned’ about an increase in businesses rates, with 69 per cent saying it would place ‘significant pressure’ on the prices paid by customers.

A recent survey of UK Hospitality members showed that 66 per cent of businesses would reduce investment, 61 per cent would raise prices and 41 per cent would reduce opening hours if rates relief was removed.

The joint letter warns: “An inflationary increase in the business rates multiplier and removal of reliefs would be disastrous for our sectors. It will mean business failures, job losses and boarded up properties in our high streets, denying people their livelihoods and their social pleasures.”

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Retailers are staring down the barrel of a £480m -a-year hike in their business rates bills from next s pring.

“Such a hefty increase will threaten to put renewed pressure on retail prices, as well as block new investment in our town and city centres. It is essential that the Chancellor uses the Autumn Statement to freeze business rates and give our local communities a fighting chance to thrive.”

Kate Nicholls, chief e xecutive of UKHospitality, added: “Freezing rates and extending relief will be a lifeline for a sector that simply cannot absorb any more costs. Inaction will leave hospitality businesses with no choice but to put up prices, open less or, in the worst-case scenario, shut their doors for good.

“Pubs, restaurants, cafes and hotels, to name a few, act as pillars of their communities and they want to continue in that central role, as well as driving economic growth and providing countless jobs. Action on business rates at the Autumn Statement is critical to that.”

A HM Treasury spokesperson said: “Inflation has halved this year thanks in part to decisions we have taken and we have backed our businesses by taking one third of properties out of paying business rates altogether.

“This come alongside spending billions slashing bills for retail, hospitality and leisure by 75 per cent and effectively cutting corporation tax by £27 billion via full expensing.”