Increase in inflation could push up business rates
Fish and chip shops could face considerable rises in business rates next year following a surge in inflation, industry body UKHospitality has warned.
It comes as inflation hit 10.1% last month, up from 9.9% in August.
With the September inflation figures traditionally used to set tax changes and rates for the following year, UKHospitality chief executive Kate Nicholls says there is a real risk that hospitality businesses will face an enormous cliff-edge in April if these numbers are used to hike the business rates tax level.
Such an increase at the same time as the risk of business rates reliefs ending could prove fatal with many "fighting to survive the winter".
Kate adds: "With hospitality inflation contributing heavily to the overall inflation rate, we now risk an inflationary spiral where our higher costs lead to higher taxes which lead to even higher prices.
“As well as needing to reform the entire business rates system in the long-term, it’s now absolutely critical that business rates relief is extended for vulnerable sectors such as hospitality and that downward revaluations are realised in full."