UK Retail Industry Facing 4% Inflation Increase
The British Office for National Statistics' latest Retail Price Inflation (RPI) figures highlight that inflation in the UK continued to rise in August to 3.9%.
The British Retail Consortium (BRC) notes that since the rate of inflation has accelerated to 3.9% from 2% in September 2016, this month's RPI is likely to be at least 4%, putting further pressure on UK retailers.
“Retailers are staring down the barrel of a hefty £280 million hike in their business rates bills from next spring,” said BRC's director of business regulation Tom Ironside.
“It is highly questionable whether communities across the UK can afford a spike in business rates of this scale and any resulting loss of commercial investment will contribute to fewer shops and fewer jobs.”
He added that the government should take immediate action in order to “put the rates system on a more affordable and sustainable footing,” which would help to increase retailer confidence.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Francesca Volpe. Click subscribe to sign up to ESM: The European Supermarket Magazine.