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Inflation figures show business tax rise is 'misguided'

Today’s 0% RPI inflation figure highlights the ‘misguided’ nature of the 5% rise in business rates to be paid by companies to local authorities, the CBI warned yesterday.

The rise, due to come into effect in April, is based on the Retail Prices Index figure for September, which was 5%. It takes no account of the fall in the RPI to 0% revealed today.

The CBI has been calling for a two-year freeze in business rates to protect companies fighting for survival from being unintentionally crushed by the tax hike.

Dr Neil Bentley, CBI’s Business Environment Director, said: “Today’s inflation figures show that the planned rise in business rates has been caused by the unfortunate timing of inflation figures.

“A spike in inflation half a year ago should not be allowed to poke business in the eye now, at the worst possible time, just because business rate rises are normally set in the month of September.

“The Government should freeze business rates for two years, helping companies to survive the recession and saving jobs.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .