Businesses on the Edge: Tax Bills Rise With Inflation
What the Figures Really Mean for Your Local Hub
The latest inflation numbers are turning heads across the high street, sparking real worries for many local businesses. If the Chancellor gives the green light to a rate bump, owners may have to reconsider hours, staff and even keep their doors open.
- Estimated Cost: £500 million could be added back into the £29.90 billion total for business rates in England and Wales next year.
- Inflation 2024: CPI hit 1.7% in September, the figure the rates are based on.
- Current Increase: Businesses already faced a 6.7% hike in April this year.
What the Key Players Are Saying
Kate Nicholls, CEO of UKHospitality, warns:
“These inflation figures confirm that hospitality is set for an eye‑watering £914 million tax bill in April, if the Chancellor doesn’t act at the Budget.”
“Business rates must be addressed, or venues at the heart of communities will see their rates bills quadruple and find themselves making awful decisions about whether to shorten hours, close more days, lay off staff, or even close their doors for good.”
Ion Fletcher, policy director at the British Property Federation, adds:
“Falling inflation is a good thing. But it still means a tax increase for hard‑pressed businesses come next April, thanks to business rates being automatically increased in line with September’s figure.”
“It’s simply not sustainable for business rates to rise every year regardless of rents and other property costs, or how well a business is doing.”
What You Can Do Right Now
- Track your own rate bill: £29.4 billion this year’s forthcoming jump shows the pressure looming.
- Talk to your council: see if any relief options are available.
- Plan ahead: consider whether you can stretch your hours or reduce staff in the short term.
- Keep an eye on the budget: the Chancellor’s decision could change everything.
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