UK inflation rises to 3.5% as BRC urges business rates freeze
UK headline inflation increased to 3.5% in September, while food inflation held steady at 1.3%, according to the latest Consumer Prices Index figures from the Office for National Statistics.
In response, the British Retail Consortium (BRC) said consumers will be concerned by the third increase in inflation in three months, with petrol and diesel prices a large part of the rise. It warned that the lifting of the Ofgem price cap this month will push up October’s figure, due to be published in November, and that rises in the cost of household appliances and pharmaceuticals will further squeeze household budgets.
Subscribe to TRBThe BRC warned that retailers face around £250 million in additional business rates bills from April 2027, because today’s figures determine the uplift. It is calling on the Chancellor to freeze rates in next week’s Budget.
Harvir Dhillon, lead economist at the British Retail Consortium, said: “Retailers and Government are aligned on the need to tackle the high cost of living, and next week’s Budget provides a crucial opportunity to do just that.
“If Government can cut the cost of doing business, retailers will be in a better position to hold back price rises and increase investment in stores and jobs. However, today’s figures, which determine April 2027’s business rates uplift, mean retailers are on the line for around £250 million in additional bills, unless action is taken.
“Now is not the time to pile on millions in extra costs, and if the Chancellor is serious about reducing the cost of living, he must freeze rates for the year ahead. Cut the costs on businesses and will be families who ultimately benefit.”
