The Office for National Statistics released its RPI inflation figure for September which is normally used as the basis for calculating next years increase in Business Rates.
Whilst the Government imposed a 2% cap on Business Rates increases in April this year, proving much needed relief for businesses, the cap only lasts for one year, and from April 2015, Business Rates are set once again to be calculated using the previous September’s Retail Prices Index (RPI) rate of inflation.
September’s RPI inflation rate of 2.3% is down on August’s 2.4%.
According to the Office for National Statistics, the drop was driven by falling prices of fuel, food, energy and transport.
Howard Elliott from BDT’s rating department says “It will be interesting to see whether the Chancellor of the Exchequer, George Osborne, makes any special announcements regarding business rates in his annual Autumn Statement to Parliament on 3rd December 2014, particularly bearing in mind that the increase in business rates will hit in April 2015, the month before the general election”.