Will businesses rate rises inspire firms to adopt cost reduction processes?
September 21st 15:51 Cost Management
Business rates for commercial properties could increase by as much as five per cent next year, the British Retail Consortium (BRC) has warned.
This could tempt a number of firms to adopt facilities management cost reduction processes in order to protect their profit margins.
However, the BRC has now written to the secretary of state for communities and local government asking him to reconsider the calculation options.
Currently, business rates are calculated using the retail price index (RPI) and the rateable value of a commercial property.
The BRC has called on the government to consider other option to help business avoid a "double blow" once the coalition's public sector spending cuts take effect.
Stephen Robertson, BRC director-general, said: "We're urging the government to use alternatives to September's RPI to calculate next April's bills.
"The coalition has already changed the way pensions are calculated. It's now using CPI rather than RPI - this change could also apply to business rates."
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