A series of new property tax increases could harm retailers' ability to support the millions of jobs they provide, the British Retail Consortium said today.
Several property tax hikes, such as business rates revaluation, come into effect today and the organisation is urging the Government to reappraise the costs they are burdening businesses with and only introduce affordable increases.

This April's revaluation will result in a substantial rise in many retailers' property costs, and business rates will also face an annual inflationary increase based on the previous September's retail price index (RPI) measure of inflation.

2008 saw the highest September RPI figure for over a decade, causing an inflation-busting rise in last year's business rate bills. Firms were allowed to defer part of 2009's hefty increase to this April, meaning many retailers will now have to deal with these costs in addition to extra increases due to revaluation.

A further property tax starting this April is the Business Rate Supplement, introduced in London to pay for Crossrail. This will mean a 5% rise in business rate bills for affected properties, said the BRC.

BRC's director general Stephen Robertson said; "Retailing is responsible for nearly three million jobs in the UK. As property costs are a major overhead for retailers, any significant increase will limit their ability to create and maintain jobs.

Retailers already pay a quarter of the £24bn in business rates in England - more than any other sector. April's property tax hikes, including business rates revaluation, will hinder retailers' vital role in contributing to the recovery."

The BRC supported the Budget's announcement to cut business rates for smaller businesses for one year, but says property taxes should be made affordable for all retailers, regardless of size.

It has also called for compulsory business ballots to prevent Business Rates Supplements being abused by local authorities as well as a full restoration of rates relief on all empty properties.