The British Property Federation has joined a growing list of voices calling on government to cap the annual business rates increase at two per cent, in line with its target for inflation, to help struggling high street retailers.
Responding to the launch of the Association of Convenience Stores’ campaign to cap business rates increase at two per cent, the BPF reiterated its support for the move.
The BPF also pointed out the compounding effect of linking business rates to the Retail Price Index, a measure of inflation, meant they had doubled over the past two decades.
Annual rates increases are currently based on Retail Price Index inflation figures from the previous September, meaning retailers face a 5.6 per cent rates hike in April.
“This damaging business rate hike will come at a time when retailers are fighting for their very survival,” says Ian Fletcher, director of policy at the British Property Federation.
“2012 has already seen several high street names either restructure or enter into administration.
“Linking business rates to RPI has meant they have doubled over the last 20 years and government should provide greater certainty for businesses by fixing the business rate uplift each year, which we have suggested should be at the rate of the inflation target.”