Retail and property chiefs have penned a letter to the chancellor calling for business rates relief ahead of a “sharp increase” due to kick in next April.
An additional £1.1bn increase in business rates is scheduled to come into effect on 1 April as a result of September’s RPI of 3.9%.
Industry lobby groups including Revo, the British Property Federation and the British Retail Consortium have united to ask Philip Hammond to mitigate the damaging impact of the rates rise.
Revo chief executive Ed Cooke said: “Business rates remain a fundamental barrier to growth in the retail sector at a time when Britain needs more than ever to demonstrate that we are open for business.
“The government must do more to solve the inequity of taxes placed on our built environment at a time of profound political and economic upheaval.
“The chancellor should act with immediate effect in the upcoming Budget by capping any rises to 2% – his predecessor responded to calls for a cap when inflation was around the same level in 2013, so there is a clear precedent for this.”
The letter also calls for more detail around the government’s commitment to conducting a full review of business rates to address concerns that the system is “broken” and will deter investment.
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