Former Government adviser Mary Portas has said more must be done to tackle business rates rises than just limiting inflationary rises to the lower consumer price index measure of inflation – a solution the Government is said to be considering.
Portas called for a more radical solution for next year. “It’s imperative that the Government seriously considers freezing business rates so that our independent retailers have a fighting chance of survival in today’s shaky and volatile market," she said.
From April 1, 2018, business rates bills are set to rise by £1.15bn in England unless the Government intervenes.
Portas' call came as ratings advisory firm Altus Group revealed that 81,083 businesses have been brought before a magistrate for non-payment of their business rates in the five months since the rates hike in April this year.
Altus Group said the system is criminalising struggling firms. “It isn’t only those whose values have increased that are struggling," said Robert Hayton, Altus Group executive vice president.
"The current, deeply unfair, system of transitional adjustment severely limits the amount by which bills can go down meaning many businesses in locations where values are falling are paying disproportionate bills.”
He added: “A rates liability freeze is the minimum that the Chancellor should do for business in today's Budget.”
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