Inflation signals a £1billion hike in the UK bank rate next year

Thursday, October 21, 2021

Persistently high inflation last month signalled that business rates for entreprenews in England could rise by roughly £1bn by next April.

The Office for National Statistics said on Wednesday that inflation was 3.1 per cent in September, down from 3.2 per cent a month earlier.

The September inflation calculation is used by the Government to determine the rise in company taxes, the property tax paid by British companies.

Property consultants Altus Group said the latest figure of 3.1% signals an increase of £1.04 billion for firms across England.

In the new tax year, the increase will take place from 1 April.

Retail, hospitality and leisure providers have enjoyed one large-scale business day of travel since the origin of the pandemic. Hence, they have not had to pay their usual utility bills.

However, the holidays were gradually cut off last few months and will be cut completely from the start of the new fiscal year.

Retailers, hit hard by the pandemic and the transition to the Internet, are expected to face a bill of over £251 million in additional payments.