Business rates are expected to total £152 million in April next year according to new research.
More than 56 thousand small businesses in England will face the steep rates increases according to rates specialist CVS.
Data by CVS indicates more than 30 thousand small shops will suffer hikes in their business rates bills of between 10 per cent and 14.99 per cent. A total of 37,364 small shops will see their rates bills rise above inflation next April.
A drop in retail sales last month as inflation hit its highest level in five years preceded the prediction.
In March the government pledged £435 million to support companies facing the steepest business increases.
Now business groups are calling for the chancellor to address the issues in his November Budget by freezing rate rises in 2018.
Head of Businesscomparison.com, Philip Brennan comments:
“The business rates hike poses a genuine threat to SMEs and, for some, it may prove to be insurmountable. Business rates will have changed significantly over the past seven years particularly in prosperous areas where the value of business properties has drastically increased. It is unfair and unrealistic to expect small business owners to be able to cover massive increases that have built over time. The Government has established a transitional relief system to help businesses affected by the biggest bill changes over the next 5 years. This is a step in the right direction, however it is crucial that this is managed effectively.
“Small business owners face daily challenges of managing cash flow and getting access to finance to sustain and grow their enterprises. Add Brexit into the mix and it is an uncertain time. Small businesses need support and stability in the current climate. The rate hike may prove a tipping point for some. The Government needs keep pushing to make sure that large businesses and online companies, whatever their size, are all paying their fair share in taxes. It is important that all businesses are competing on a fair playing field.”