Now struggling High Street is facing business rate rise of 14%

BUSINESS rates are likely to soar by 14 per cent over the next five years in a bitter blow to High street stores as they battle to survive.

The bill paid by British firms will rise from £ 29.6billion last year to £ 33.8billion in 2022- 23, according to the Treasury’s official forecasts.

That will spell misery for thousands of shopkeepers and other businesses facing fierce competition from online rivals.

The business rates burden has already risen by 26.5 per cent since 2009-10 when it stood at £23.4billion. if the bill does reach £33.8billion in 2022-23 as predicted, it would have gone up by more than 44 per cent since the turn of the decade.

Chancellor Philip Hammond is under growing pressure to use this month’s Budget to help save the High street.

The Mail has been campaigning for the Treasury to create a level playing field between traditional shops and online firms such as Amazon and Asos.

Last year Amazon paid £14million in business rates on its 14 warehouses across England and Wales, compared with Marks & spencer which paid £184million. Amazon said its total bill was higher than this once its other sites were taken into account. But it refused to say how much it was. MPs have called for greater transparency around how much such companies pay.

Peter Kyle, a Labour MP and member of the business select committee, said: ‘We have to have transparency about who is paying tax, and what tax, now.

‘Right now there is a bitterness creeping into the minds of high street retailers that the benefit of online activity is happening at their expense.’

Mark Pawsey, a Conservative MP and also a business committee member said: ‘A modest online retail tax would go some way to restoring the balance between online and bricks and mortar retailers. Maintaining our town centres is incredibly important.’

Rosa Ashby, who has run Rosa Flowers in Witney near Oxford for more than 20 years, said: ‘ Business rates are an absolute nightmare. Each year it gets harder. Our rates are approximately £ 9,000 a year. That’s approximately £770 a month.’

The UK’s hospitality sector, which includes hotels, restaurants, pubs and cafes, is also affected by rising business rates, with the industry due to pay an extra £ 113million next year.

Katie Nicholls of industry body UK Hospitality, said urgent reform was needed in order to preserve the sector and the jobs it provides.

‘We call on the Chancellor to announce a freeze in the Budget and introduce a digital tax,’ she said.

‘An absolute nightmare’