The latest Consumer Price Index figures from the Office for National Statistics published yesterday (Wednesday), reveals that inflation in September stood at 2.4%.

This figure is used to calculate the business rates multiplier for the next financial year, meaning retailers will face an extra £180 million on their annual business rates bill from April.

The retail industry makes up 5% of the economy (Gross Value Added), pays 10% of business taxation and pays a quarter of the business rates bill, £7 billion per annum.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “These figures confirm that the retail industry, which is under significant pressure from public policy and a consumer and technology-led transformation, will face yet another eye-watering rise in business rates next April.

"The burden of the current business rates system, which is in urgent need of reform, is leading to store closures and hindering the successful reinvention of the retail industry.

“Ministers need to act to address this £180 million increase in retailers’ already unsustainable business rates bill, along with other public policy burdens which retailers are struggling to absorb the cost of.

“We need a freeze in the business rates multiplier until the next revaluation to help save shops, protect jobs, and future-proof retail, and to give the Government time to work with industry to reform the business tax system and make it fit for purpose in the 21st century.”