Businesses will have to find an extra £1.7 bn next year as rates bills are set to rise in line with the latest inflation increase for September, coming in at 6.7%.
This could lead to a slower recovery and, potentially, more inflation as businesses pass on costs, with business leaders and rates experts both calling on the Government to scrap the rise as firms recover from the pandemic and face cost pressures from the decades-high levels of inflation.
Rates bills generate around £25bn a year for the Treasury, but businesses have been calling for largescale reforms for several years, with few changes.
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Last month the bosses of several large UK retailers, including Tesco, Aldi, Ikea, Greggs and M&S, wrote to Mr Hunt warning that an inflation-linked rise risks “severely undermining” the fight against inflation and could lead to higher prices in stores.
“An increase to costs at this level could lead to upwards pressure on prices, just as shop price inflation has begun to ease,” they said in a letter seen by The Times.
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