Local authorities could use the powers outlined in the Business Rate Supplementary Bill to burden retailers with extra taxes, it has been argued.
Announced today as part of the Queen’s Speech, the Bill could mean local authorities may introduce a supplement of 2p per £1 of rateable value from 2010.
But the British Retail Consortium said retailers are already paying more in business rates than other sectors and another supplement would add “£160m a year to their bills”.
Director general Stephen Robertson said: “When you combine this with an onslaught of other property cost increases, including the 2010 Rates Revaluation and the end of Empty Property Rate Relief, this is another burden on retailers when they can least afford it.
“Retail’s responsible for 3 million jobs in the UK. It is vital to local economies, to regeneration and communities.
“As we head into recession the government should be reducing the burdens on retailers, not compounding them.”
The organisation said it is concerned authorities could fund general expenditure with the extra money, rather than using it for “genuinely business-boosting infrastructure projects”.
Tesco corporate and legal affairs director Lucy Neville-Rolfe added: “Businesses that are property dependent, including retail, are facing into the worst recession for many years.
“It is very unfair that rates for next year will increase by 5% as they are based on September 2008 figures when inflation was very high.”
Earlier this week, Peter Mandelson led a campaign to ensure a possible ban on cigarette displays will not go ahead, arguing this would hit profits at smaller businesses.
According to reports, MPs also rejected the possible introduction of a minimum alcohol price in stores.
