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News Release

London

RPI inflation hike is just another kick in the teeth for businesses says JLL’s Head of Rating


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The Office for National Statistics announced on 17 October 2017 that RPI inflation rate for the 12 months to September 2017 was 3.9%. This figure will be used to set new business rates values in April 2018. 

JLL’s Head of Rating, Tim Beattie, believes that this could deliver another blow to ratepayers, commenting: “JLL is calling for The Chancellor to bring forward the proposed switch to the business rate calculation from RPI to CPI to 2018 instead of 2020. The Treasury has said that the switch could save companies £1b in the first three years, so bringing it forward will help to ensure that ratepayers are not dealt with another swinging increase in their rates when they can least afford it.”

Beattie, adds: “Continued failure by the Government to address the concerns of businesses cannot go on. The recent business rates revaluation has already had costly effects, particularly on high street retailers and the ONS announcement will surely be viewed as just another kick in the teeth for those businesses who are already suffering. If the Government wants us and the world to believe that the UK really is the best place to do business, it needs to listen to and support its business community in times of hardship.”

The RPI inflation rate is used to calculate the maximum permissible increase to rate multipliers for the 2018/19 rate year. If applied in full, JLL estimates that the following rate multipliers will result:​

LocationSmall Rate MultiplierLarge Rate Multiplier
England48.4p49.7p

London

(Including Crossrail Supplement)


51.7p

City of London

(Including Crossrail Supplement)


52.2p
Scotland48.4p51.0p
Wales51.8p51.8p