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18 July 2017

Business rates switch key to supporting inflation-hit small firms

Responding to the announcement that the Consumer Prices Index (CPI) remains above the Government’s 2% target at 2.6% and the Retail Prices Index (RPI) stands at 3.5%, Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said:

“All over the country, firms are paying themselves less and further increasing prices in an attempt to manage inflationary pressure.     

“Small firms are still absorbing the shock of April’s delayed business rates revaluation. To add insult to injury, we had news last week of yet another delay to delivery of the hardship fund promised months ago to those worst affected.

“Confirmation in recent days that rates bills will rise in line with CPI rather than RPI from 2020 will go some way to supporting small firms that are struggling against sharp hikes in the future. Given that operating costs are now at their highest in four years, and against a backdrop of unprecedented political and economic uncertainty, help is needed in the here and now. It’s clear that this switch must be brought forward to 2018.”