‘Outmoded’ business rates need an overhaul

BIRMINGHAM business leaders have urged the government to reform “onerous and outmoded” business rates after inflation fell more than expected in September.

Greater Birmingham Chambers of Commerce (GBCC) welcomed the prospect of no interest rate rises in the next six months – but warned business rates would increase in the spring.

They rise every year in line with September’s inflation figure and, based on these results, the British Retail Consortium expects them to go up by £180 million.

The Office for National Statistics said the fall to 2.4 per cent from 2.7 per cent was driven by lower prices for food and non-alcoholic drinks.

Paul Faulkner, the GBCC’s chief executive, said: “It was pleasing to see inflationary pressure ease as we head into the autumn.

“The announcement is also likely to dampen any prospect of an interest rate rise in the next six months as Mark Carney, governor of the Bank of England, will no doubt reassure us that inflation levels are edging closer to their two per cent target.

“Nevertheless, the result also confirms a sobering fact – business rates will be going up from next spring.

“Our latest Quarterly Business Report reveals that local firms are increasing affected by this onerous tax. We urge the Government to use the autumn statement to announce measures to reform this outmoded system and ease the burden on businesses up and down the country.”