CBI slams business rate hike

THE CBI has slammed a planned 5% hike in business rates as a “threat to jobs and investment”.

Local authorities have received a letter from the Government telling them that business rates will rise by 5% in April 2009, in line with September’s RPI rate of inflation.

Commenting on the decision to put rates up, rather than freeze them to give the economy a boost, the CBI’s Director of Business Environment policy, Dr Neil Bentley said: “This unnecessary jump in business rates will affect nearly every firm, and struggling retailers will be particularly hard hit, at a time when they need all the help we can give them.

 “Pegging the increase to September’s record RPI rate – an 18-year high – enables government to raise £400m in extra tax revenues from firms when they can least afford it.

“Councils will now have carte blanche to raise £1.15bn extra in business tax next year.This threat to jobs, investment and the survival of viable businesses can still be avoided if the government lives up to its promise of ‘doing everything it can’ by freezing next year’s rates.”