Business rates for hotels, restaurants and pubs could rise £50m for 2019/20, if the current rate of inflation remains unchanged at 2.5%.
Next month the Consumer Price Index measure of inflation determines the annual rate rises for the following financial year, with the Uniform Business Rate.
According to real estate advisor Altus Group, business rate bills would increase overall by £758.55m in England, if the headline rate of inflation doesn’t shift.
Hotels would face a £19.80m increase with pubs shouldering £18.71m of the increase and restaurants £12.75m.
Chancellor Philip Hammond sought to appease concerns over last year’s business rates revaluation, announcing a £2.3bn reprieve in his Autumn 2017 Budget by bringing forward plans to switch from the discredited Retail Prices Index (RPI) measure, two years earlier, from April this year.
Robert Hayton, Head of U.K. Business Rates at Altus Group, said: “With our high streets engulfed in crisis and brexit uncertainty hurting manufacturers and the services industries, the Chancellor should be bold within his Autumn Budget later in the year through an unprecedented stimulus by freezing rate rises.”
Business rates income has risen by £6.04bn, up by a third during the last 10 years, to a projected £24.8bn in England this year.