The Federation of Small Businesses (FSB) and British Retail Consortium (BRC) have warned that a growing number of firms, including retailers, could soon be on the receiving end of higher business rates.
With retail price inflation - which the government uses as its yardstick for calculating rates, rather than consumer price inflation - climbing to 5.6 per cent in September, retailers were warned they could be hit with a multi-million pound tax bill from next April, potentially triggering job losses.
“Business rates are the highest overhead for a small business. At a time when they are struggling, it will be another kick in the teeth next year, when most businesses hope things will be improving,” FSB chief spokesman Andrew Cave told the Daily Telegraph.
BRC director-general Stephen Robertson claimed some companies failed to weather this year’s 4.6 per cent increase and urged the government to reconsider implementing another hefty hike in 2012.
Earlier this month, the BRC welcomed chancellor George Osborne’s announcement at the Conservative Party conference that residential council tax will be frozen again next year, potentially leaving consumers with more money to spend on the high street.
