The British Retail Consortium (BRC) has said that while council tax freezes are welcomed, the government must also consider limits on business rates.
This week's Conservative Party conference has seen Chancellor of the Exchequer George Osborne announce that residential council tax will be frozen for the next year, which will mean more money for consumers to spend elsewhere.
However, the BRC is concerned that unless business rates are also limited, it will spell trouble for retailers - as this September's predicted RPI inflation fugure might mean a business rates rise of 5 per cent. Statistics show that the volumes of sales and retail employment are decreasing.
"The council tax freeze will make a useful contribution to easing the pressure on household budgets, leaving customers' with more money to spend on the things they need and want," said Stephen Robertson, director general of the BRC.
"But if the government really believes in generating growth, it will limit the burden for businesses too. [Extra costs] can only undermine retailers' ability to invest and create jobs."
