Chancellor Urged to Freeze Multiplier Amid Rising Costs
- Retail business rates could increase by £169m in the next year
- Altus Group’s calculations show a £662.15m increase for England in 2020/21
- Business rates income has risen by £6.04bn since 2010/11, expected to reach £24.97bn this year
- Robert Hayton urges the chancellor to freeze the multiplier for a pro-business move
- Over 50 retailers signed a letter demanding government action on business rates
Retailers face a potential increase of £169 million in business rates over the next year, according to real estate advisors Altus Group. Their calculations suggest that gross business rates bills (excluding non-retail) for England’s financial year 2020/21 could rise by £662.15 million if inflation remains at 2.1%. Since 2010/11, business rates income has grown by almost a third to reach an expected £24.97 billion this financial year. Robert Hayton, head of UK business rates at Altus Group, called on new Chancellor Sajid Javid to be ‘bold’ and ‘pro-business’. He proposed freezing the multiplier, a move that could benefit other sectors like manufacturing. Over 50 retailers have already signed a letter demanding government action on business rates.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about the potential increase in business rates for retailers and calls for an overhaul of the system. It includes data from a real estate advisor, Altus Group, and quotes from Robert Hayton, head of UK business rates at Altus Group. The article also mentions the impact on various sectors and previous actions taken by retailers.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential increase in business rates and calls for reform, but it could benefit from more analysis or context on the broader economic impact of this issue.
Financial Relevance: Yes
Financial Markets Impacted: Retail and hospitality businesses, manufacturing sector
Financial Rating Justification: The article discusses an increase in business rates which could impact the financial situation of retailers and other sectors such as manufacturing. This can affect their profitability and potentially influence stock prices of companies in these industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses an increase in business rates, which could have economic consequences for retailers and other sectors, but it does not meet the criteria of an extreme event.
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