The British Retail Consortium (BRC) is one of several groups urging the chancellor to freeze business rates to protect the future of the high street.
A host of lobby groups have also requested an extension and increase in the retail, hospitality and leisure rates relief scheme ahead of next week’s autumn statement.
In a letter to Jeremy Hunt and secretary of state Michael Gove, the groups warned that increasing the metric used to calculate property tax bills will result in a rise in inflation.
The BRC, British Independent Retail Association, UK Hospitality, Association of Convenience Stores and UK Active wrote: “Energy prices remain at historically high levels, we have seen soaring wage costs (in our labour-intensive sectors) and our input costs remain high.
“For many businesses in hospitality, leisure and retail, the crisis is far from over.”
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The letter said around £10bn a year is paid by the retail, hospitality and leisure sectors.
If rates were to rise in line with inflation, the groups said this would see retailers pay an extra £480m and hospitality firms an additional £234m.
It added that the cap on the relief scheme should be brought to at least £2m per business, otherwise retail and hospitality will be hit by a £750m and £630m bill respectively.
Fresh calls for the chancellor to take action come as Hunt is set to announce a 6.7% increase in business rates next Wednesday.
Late last week, Sainsbury’s, M&S and Currys all demanded action from the Chancellor arguing an increase would increase its prices and would “threaten to divert millions of pounds away from ongoing investment”.
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