Business rates bill for London firms set to hit £10bn

The annual business rates bill hitting London firms could rocket to £10 billion for the first time next year, a study showed on Friday.

Property advisory firm Altus Group warned a hike would be a blow to hoteliers, restaurant owners and retailers already grappling with high rates, rents and wages.

The September Consumer Price Index measure of inflation determines the annual level of rate rises for the coming financial year.

Altus Group said the £9.75 billion being paid out this year in London could rise by £244 million from April 2019 if the headline rate of inflation remains unchanged at 2.5%.

The firm is urging Chancellor Philip Hammond to use his autumn budget in November to freeze inflationary rises.

Altus pointed out that companies are struggling because last year they had to contend with a rates revaluation based on a seven-year change in property prices.

That was on top of the annual rates bill rises.

Restaurant entrepreneurs attacked potential new hikes. David Page at the Franco Manca pizzas chain said: “The government seem to be on another planet.”