Inflation Drop Undermines Case for Business Rates Hike
The Office for National Statistics has announced that inflation has fallen by 1.7% from its peak at 5.6% in September 2011. This announcement adds to business organisations' case against planned 5.6% increase in business rates to come in this April. ACS is calling for the Chancellor to cap this rates increase in line with the Government's 2% inflation target.
James Lowman, ACS Chief Executive, said: “These ONS figures show that £350million* business rates hike is excessive. Inflation has already fallen by nearly a third from the September peak of 5.6%. It's time for the Chancellor to act to support businesses.
“Capping business rates at 2% in line with the Government’s own inflation target will provide businesses with relief from a spike in inflation, certainty on future rates and the confidence to maintain jobs and growth."
The campaign to cap business rates at 2 per cent is supported by ACS, the British Council of Shopping Centre, the British Independent Retailers Association and the Forum for Private Business.
Shane Brennan Public Affairs Director
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Edward Woodall Public Affairs Executive
Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. *£350 million of the 5.6% increase in business rates is the additional cost to the whole retail sector as stated by the BRC.
3. RPI annual inflation stands at 3.9 per cent in January 2012, down from 4.8 per cent in December 2011