A coalition of retailers, hospitality and leisure businesses have written to Chancellor Jeremy Hunt, urging him to freeze the business rates multiplier and extend existing rate reliefs.
Leaders from the British Retail Consortium, UKHospitality, Association of Convenience Stores, British Independent Retail Association and UKActive have warned Hunt that the future of businesses and the high street are at risk unless he takes urgent measures.
The business leaders warn that inflation-linked increases to the business rates multiplier will cost retail businesses £480m and hospitality businesses £234m.
An end to current reliefs will cost hospitality businesses £630m and retailers £750m.
The joint letter foresees the ramifications of such dramatic increases in business rates, claiming “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.”
The open letter comes as a survey of BRC members found that 66% of retailers would reduce investment, 61% would raise prices and 41% would reduce opening hours if rates relief was removed.
BRC chief executive Helen Dickinson said: “Retailers are staring down the barrel of a £480m-a-year hike in their business rates bills from next spring.
“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.”
Hunt is due to deliver the autumn statement on November 22.
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