High street prepares for business rates hike

Yorkshire Street, Rochdale: companies are likely to see their business rates increase by 2.1%

Businesses could see their business rates increase by 2.1% next year as business rates increase with inflation.  

The September Consumer Prices Index (CPI) measure of inflation, which will be released in October, determines by how much the tax paid by businesses on the properties they occupy will increase.

An increase of 2.1% could mean a total rise of £662.15m, according to calculations by real estate adviser Altus Group, and would result in a specific rise of £169 million for the retail industry.

Responding to the news, Councillor Allen Brett, leader of Rochdale Borough Council, said: “At a time when high streets up and down the country are on their knees, the last thing the government should be contemplating is any increase to business rates, which have been a stranglehold on our businesses community for far too long.

“For this reason, we’ve been proactive in investing in our town centres by offering massive business rates relief to new businesses opening in vacant units and we’ve seen a number of fantastic new independents opening as a result.

“Any retrograde step from government to hike rates now risks undermining vital initiatives like this, which have helped breathe life back into our high street.”

The annual increase will come into effect in April 2020.