The September CPI has been announced at 1.7% on which affects calculations for business rates in the 2020/21 financial year.
This inflation rate would give a 2020/21 UBR of 49.9p (England & Scotland) and 53.5p (Wales).
For England 2020 it would be:
Small, Medium and Large Business Rate: 0.49.9p
For Scotland it would be:
2020 – Small and Large Business Rate: 49.9p with an inflation rate of 1.7% in both categories.
2021 – Small and Large Business Rate: 50.7p with an inflation rate of 1.7% in both categories (assuming the same inflation rate as 20/21).
For Wales 2020 it would be:
Small and Large Business Rate: 53.5p with an inflation rate of 1.7% in both categories:
The increase has, once again, led to calls for the inflationary rise to be scrapped to help struggling businesses, particularly retailers. The British Retail Consortium was quick to point out its members will be paying an extra £137 million based on the new CPI.
Pubs are expected to pay out an extra £12.77 million with restaurants and hotels facing increases of around £9.71 million and £14.41 million respectively, according to other industry figures