UK inflation stays at 2.7% in September while retail price inflation is 3.2%
The figures released by the Office for National Statistics in its Consumer Prices Index show that inflation stayed the same as in August, when it fell from 2.8% in July.
The retail prices index measure of inflation dropped slightly to 3.2% from 3.3% in August. The British Retail Consortium said the month's figure would be used to calculate next year's increase in the business rates with new analysis showing that retailers will pay £3.44 in business rates for every £1 they pay in corporation tax in 2014 compared to £2.48 in 2005.
Helen Dickinson, BRC director general, said: "Across the country today, retailers are adding up what this increase in the RPI will mean for the cost of their business rates next year. Many will be wondering whether they will be able to stay open.
"At the BRC we have spoken to retailers who will be forced to close shops because of the increase and many that have decided not to open new ones. This tax increase is likely to cost communities across the country 19,670 full time jobs. It is clear that the business rates system is no longer fit-for-purpose. It requires complete reform."
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