The September CPI inflation rate has been announced as 3.1%.
This sets the level for the maximum allowable increase in the tax rate for the 2022 – 2023 rate year.
If implemented, this will bring a significant uplift in property costs from April 2022 for all commercial property occupiers.
Last year the annual increase was waived as part of the government’s COVID relief measures. Given the difficulties still being faced across the economy it will take a brave Chancellor to implement any increase in this tax on bricks and mortar retailers.
We expect the Chancellor to confirm whether or not the business rate is to be increased when he delivers his Autumn Budget on 27 October.
As a consequence ratepayers continue to face uncertainty with regards to budgeting and the scale of future fixed liabilities. If you wish to discuss the potential implications, please contact Alan Vickery, Head of Business Rates, 020 7489 4831 or alan.vickery@dwdllp.com