Over 25,000 high street jobs at risk due to looming £730million business rate hike
The Centre For Retail Research says that the jump could trigger the closure of a staggering 8,000 shops, costing at least 24,000 job cuts, if the Chancellor does not step in
MORE than 25,000 high street jobs could go after new figures yesterday paved the way for a £730 MILLION business rate rise.
Experts warned more shops would be “doomed” unless the Chancellor steps in to kill off the eye-watering tax hike next year.
Official inflation figures yesterday came in at 2.4 per cent.
They are used to set the annual increase in business rates each April.
The increase would add £730 million to the rates bill for property across the UK from shops to pubs, restaurants, schools and even NHS Hospitals.
Of this, shops face a near £190 million increase and pubs an £80 million rise.
The Centre for Retail Research warned the jump would trigger the closure of a staggering 8,000 shops next year –costing at least 24,000 job cuts.
Joshua Bamfield stormed: “The high street has endured two years of severe hardship and this will force up unemployment.”
Ex-Sainsbury’s chief Justin King demanded the Treasury act to spare the high street and slap taxes on online giants – who largely escape business rate bills as they are a tax on property.
Mr King told The Sun: “Business rates are becoming a material part of a retailers’ costs. They are fundamentally unfair and they are accelerating the demise of the high street.”
Robert Hayton, of ratings experts Altus Group, stormed: “Our high streets are engulfed in crisis.
“It’s time for the Chancellor to take a step back and support business through an unprecedented stimulus by freezing rate rises at the Budget.”
Business rates are charged on all non-domestic properties and net the Treasury a whopping £30 billion this year alone. The rates have soared 10 per cent in the past 5 years despite carnage on the high street as shoppers switch to buying online from sites such as Amazon and clothing site Asos.
Philip Hammond announced a £435 million package of ‘rate relief’ in March last year after a Tory rebellion over the tax.
But critics pointed out Chancellor in many cases had merely delayed the effects of an eye-watering rate revaluation.
A Treasury spokesman last night said any decision on business rates would have to wait until the Budget on October 29. He pointed out the Treasury had switched from the RPI measure of inflation to set rate increases - which is typically higher than the Consumer Prices Index.
CPI inflation was expected to come in higher than 2.4 per cent in September.
But yesterday’s official figures revealed it fell from 2.7 per cent in August because of cheaper food prices.
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The lower-than-expected figure means the state pension will go up by average earnings – 2.6 per cent – under the Government’s Triple Lock promise to OAPs.
This means the state pension will rise by £4 a week to £168.65.
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