Business rates could rise by £1.95bn in ‘bleak picture’ for UK retail and hospitality

Bosses from retailers including M&S, Tesco and Ikea called on the government last month to scrap the planned rise in business rates. Photograph: Henry Nicholls/Reuters

High street shops could see their business rates bill increase by up to £1.95bn next year because the rate charged is linked to inflation.

Hospitality industry leaders said the expected rate rises would “undoubtedly be the final nail in the coffin” for many businesses, which have already been squeezed by the rising costs of labour, energy and ingredients.