Home Money High Street left fuming as Chancellor pledges to push ahead with hefty hike in business rates

High Street left fuming as Chancellor pledges to push ahead with hefty hike in business rates

by Elijah
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Disappointment: Business leaders have been calling for a complete overhaul of the tariff system for years

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Disappointment: Business leaders have been calling for a complete overhaul of the tariff system for years

Disappointment: Business leaders have been calling for a complete overhaul of the tariff system for years

A sharp rise in business rates is set to take place after hospitality and High Street calls for help fell on deaf ears.

The tax, which applies to commercial properties including shops, pubs, offices and warehouses, increases by 6.7 per cent on April 1.

This will add £1.7bn to bills in England alone, says property consultant Gerald Eve.

Business leaders have been calling for a complete overhaul of the system for years and urged the Chancellor to act.

He did not respond, sparking fury among bosses who pointed out that the increase is based on the outdated September inflation figure of 6.7 percent.

Currys chief executive Alex Baldock said: “It’s no surprise that more and more stores are having to close their doors when you take into account all the costs retailers are facing.”

“It is hugely disappointing that the Chancellor has once again failed to address the business rates burden on retailers.”

He warned that as a result there would be “higher inflation, lower growth and fewer jobs.”

Marks and Spencer boss Stuart Machin said this week an increase was “economically illiterate”.

From April, businesses will pay 54.6p for every pound their property is worth, after four years of paying 51.2p.

Inflation has fallen significantly since September, down to 4 percent in January. Helen Connolly, boss of fashion chain New Look, said: “Retail is unanimous in its view that the business rates system is not fit for purpose and needs fundamental reform.”

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