UK Retailers Struggle Amidst Increasing Costs and Taxes
- Retail sector faces a potential £137m hike in business rates next year due to inflation
- Inflation rate uprating adds £536m to overall gross business rates burden
- English high streets under further pressure from additional costs
- Businesses call for pro-business Autumn Budget and scrap of inflationary rise
The retail sector is expected to face a significant increase in business rates next year due to inflation, according to real estate advisers Altus Group. The firm’s calculations show that the 1.7% uprating for inflation will add an additional £536m to the overall gross business rates burden, amounting to a £136.92m hike in April. This comes as the Office for National Statistics (ONS) Consumer Prices Index (CPI) measure of inflation determines business rate rises for the following financial year (2020/21). The Uniform Business Rate (pence in the pound tax rate) is uprated annually for inflation, with the current standard rate of tax for business rates in England rising to 50.4p on 1 April 2019 for 2019/20, marking the first time it has gone above 50%. Alex Probyn, UK president of expert services at Altus Group, stated that the compound effect of annual inflationary rises are unsupportive of UK businesses and called for a pro-business Autumn Budget from Chancellor Sajid Javid. Dominic Curran, property policy advisor at the British Retail Consortium, added that retailers will have to pay an extra £137m from April and urged the Chancellor to take action in the forthcoming Budget by scrapping the ‘downwards transition’ which takes £1.3bn from retailers and uses most of it to subsidize rates in other industries.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the impact of inflation on business rates and quotes experts in the field. It also includes relevant data and statistics to support its claims.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of inflation on business rates and its effect on the retail sector, but could benefit from more analysis or context on the broader economic implications and potential solutions beyond just calling for action from the chancellor.
Financial Relevance: Yes
Financial Markets Impacted: English high streets, retail sector, businesses
Financial Rating Justification: The article discusses the impact of inflation on business rates, which affects the financial burden on English high streets and the retail sector. It also mentions potential changes in tax rates for businesses and calls for action from the Chancellor in the upcoming Budget.
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, but the article discusses a potential increase in business rates due to inflation, which could have a minor impact on the retail sector.
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