Rates bill shock for hammered high st

BUSINESS rates are set to hit a record high after a near £730million surge next year. Struggling shops will be among those hardest hit, with fears another wave of stores could be tipped over the edge. Industry chiefs called next year’s increases “eye watering” and demanded Chancellor Philip Hammond freeze rates in this month’s Budget. UK firms already pay £30billion a year in business rates. Those in England face rises again next April, based on last month’s 2.4 per cent rate of inflation, which was confirmed yesterday.

Rates are calculated by using the market rent of a property and then applying a multiplier. Next April’s increase will mean the standard tax rate on larger premises in England will rise above 50 per cent for the first time since the system was introduced in 1990, when it was just under 35 per cent.

Industry experts Altus Group say, of the £728million rate rise next April, £186million will fall on the retail sector, £174million on offices and £153million on industry.

After London and the South East, the region facing the biggest increase is the North West.

There are calls for reform of business rates, especially as big online firms often pay a fraction of what their high street rivals face.

For example, Amazon pay £38million in business rates while Tesco shell out £700million.

Helen Dickinson, chief executive of the British Retail Consortium, said: “The burden of the business rates system, which is in urgent need of reform, is leading to store closures and hindering the reinvention of the retail industry.

“We need a freeze in the business rates multiplier until the next re- valuation to help save shops, protect jobs and future-proof retail, and to give the Government time to work with industry to reform the business tax system and make it fit for purpose in the 21st century.” AILING airline Flybe’s share price nosedived 40 per cent yesterday as they warned about a triple whammy of slowing demand, higher fuel costs and the weak pound. The last two of those will cost them £29million alone, they said. Bosses are braced to lose about £12million this year, on top of £19million last year. LAST month saw the weakest growth in online sales for four years.

Figures from IMRG and Capgemini show the usual annual surge in cyber sales slowed to 7.5 per cent – the lowest this year and the worst September since 2014.

Clothing grew 2.2 per cent, compared with a five-year average of 7.4 per cent.

And orders via a computer tablet dived by a fifth. The slowdown suggests the tough times in retail aren’t just happening on the high street.

Andy Mulcahy from IMRG said: “The strong second quarter, stimulated by events such as the Royal Wedding, World Cup and heatwave, may have left people with less disposable income.”

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