Calls have emerged for chancellor Jeremy Hunt to freeze business rates once again in his November autumn statement.
Following a month-on-month ease in shop price inflation to 5.2% in October from 6.2% the month before, industry body the British Retail Consortium (BRC) argued higher taxes would simply refuel price rises in future.
“To keep inflation heading in the right direction, it is vital that the government does not burden businesses with unnecessary new costs,” chief executive Helen Dickinson said.
“Immediate action” is needed from the chancellor in order to prevent businesses from being hit with almost half a billion pounds extra in tax per year, she added.
Business rates in the current year were frozen by the chancellor in last year’s autumn statement in a bid to prevent shops from increasing prices on the back of higher tax rates, in turn fueling inflation.
With Hunt’s latest fiscal announcement approaching, BRC called on the chancellor to freeze business rates again for the new financial year starting in April 2024.
"Without immediate action from the Chancellor, retailers have an additional £470m per year on their business rates bill, jeopardising the progress made," said Dickinson.
“Ultimately, it’s consumers who would pay the price for the rising rates bill,” she added.