Reform business rates to keep food prices low, retail sector warns
The rate at which food prices are increasing sank to its lowest level since last summer this month, as sector heads make fresh calls to the government to slash business rates to ensure the deceleration continues.
According to the latest reading from the British Retail Consortium (BRC) food inflation came in at 8.8 per cent in October, down from 9.9 per cent in September.
Soaring food prices have been on a downward trajectory over the past few months in a signal that the worst of the cost of living pressures are beginning to ease.
Fresh food inflation also slowed further in October, to 8.3 per cent down from 9.6 per cent the prior month and non-food inflation fell to 3.4 per cent this month, its lowest level since last September.
But Helen Dickinson warned that retailers have an additional £470m per year on their business rates bill, which could hinder recovery.
She explained: “Without immediate action from the chancellor, retailers have an additional £470m per year on their business rates bill, jeopardising the progress made. Ultimately, it’s consumers who would pay the price for the rising rates bill.”
“To keep inflation heading in the right direction, it is vital the government does not burden businesses with unnecessary new costs.”
She added:“Retailers have been battling to keep prices down for their customers in the face of rising transport costs, high interest rates and other input costs.”
Dickson joins a slew of other retail and hospitality firms who have been calling for a reform of the scheme, which taxes the buildings retailers and other businesses occupy.
Simon Green, head of rates at property experts Gerald Eve, calculated that businesses will pay collectively an extra £1.7bn from next year as rates bills are set to rise in line with the latest inflation figures.
An HM Treasury spokesperson said: “We are fully committed to supporting businesses, and know this is key to growing the economy.
“That is why we have provided tax relief to thousands of businesses, with one third free from paying business rates and others having their bills slashed by 75 per cent.
“We have also protected businesses from rising energy costs and are keeping the duty on pints down through our Brexit Pubs Guarantee.”