Retail and hospitality firms could face a £2.66 billion a year rise in business rates in April, experts have warned.
Alex Probyn, president of property tax at data firm Altus Group, warned that the sectors face a “cliff edge” moment unless the tax break is extended in the upcoming Budget. But it has left Ms Reeves with a balancing act, between shoring up the public purse and making policies which encourage economic growth, something the new Government has cited as a key objective.
The tax is levied on businesses which have physical premises, and has long been criticised for handing digital-only companies like online retailers an unfair advantage. Then, through 2022 and 2023, skyrocketing inflation caused their operating costs to rise while the cost-of-living crisis depressed sales.