The Labour government should end the 14 years of Conservative business rates rises which is harming the viability of high street stores across the country, a leading retail association has warned.
Office for National Statistics today (14) stated that Consumer Prices Index (CPI) climbed 2.2 per cent in the 12 months to July compared with a 2.0-percent annual gain in June. This implies that Britain’s annual inflation rate rose in July for the first time this year and is now back above the Bank of England’s target.
Responding to the latest CPI inflation figures, Kris Hamer, Director of Insight of the British Retail Consortium, pointed out that with inflation expected to rise further, retailers are facing the prospect of another large rise in business rates next year.
Hamer said, “Despite prices falling month-on-month, headline inflation returned above the Bank of England’s 2 per cent target. This was mainly driven by slowing deflation for gas and electricity bills, which had seen big price drops in July 2023 compared to this year.
"Food inflation was unchanged, after falling for the preceding 15 months, as increasing commodity costs over 2024 began to filter into prices, however key ingredients like rice and olive oil did see a welcome price drop on the previous month. There was also good news across wider retail, with prices for clothing, furniture and household appliances all down on the month before.
"With headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year, which are based on September inflation rates. This penalises the retail industry, as retail products currently have generally lower inflation levels than the headline figure on which business rates rises are based.
"The Government should buy into retail by ending the 14 years of Conservative business rates rises, which have seen the multiplier increase by a third since 2010, harming the viability of many high street stores across the country.”
- ONS Consumer Price Index figures
| Year on Year changes | Jun-24 | Jul-24 |
| CPI (overall index) | 2.0% | 2.2% |
| 01 Food and non-alcoholic beverages | 1.5% | 1.5% |
| 02 Alcoholic beverages and tobacco | 7.3% | 7.3% |
| 03 Clothing and footwear | 1.6% | 2.1% |
| 04 Housing, water, electricity, gas and other fuels | -4.7% | -1.5% |
| 05 Furniture, household equipment and maintenance | -1.6% | -1.7% |
| 06 Health | 6.3% | 5.7% |
| 07 Transport | 0.9% | 0.2% |
| 08 Communication | 2.9% | 4.5% |
| 09 Recreation and culture | 3.9% | 3.7% |
| 10 Education | 4.5% | 4.5% |
| 11 Restaurants and hotels | 6.2% | 4.9% |
| 12 Miscellaneous goods and services | 2.9% | 3.5% |
