Rate rises 'may cost 20,000 jobs'

Published on Sunday 19 April 2009 12:57

Planned increases in business rates could cost almost 20,000 jobs and "kill off" hundreds of retail companies, the Government has been warned.

The British Retail Consortium said other knock-on effects of the rates rise included a reduction of 500 million from other taxes in 2011 alone, less investment by retail businesses and 50 million extra in unemployment benefits.

The BRC has previously calculated that annual increases, next April's business rates revaluation, last year's loss of empty property relief and business rates supplements could add 1.6 billion to the 5.45 billion retailers paid in business rates in 2007/2008.

Chancellor Alistair Darling was urged to announce a freeze on business rates in this week's Budget.

Stephen Robertson, director general of the BRC said: "Our report reveals the scale of the potential damage to jobs, businesses and the wider economy from these business rates increases.

"The irony is a third of what the Chancellor gains in extra business rates will be lost to him as a reduced retail sector delivers lower amounts of other taxes and the benefits bill rises.

"Alistair Darling must use his Budget to announce an immediate freeze on all new business rate burdens and the reinstatement of empty property rates relief."