A rating surveyor has claimed business rates are being distorted because of figures used to calculate increases.
David Cureton, head of rating at Birmingham surveyor Johnson Fellows, called for the Government to use the Consumer Price Index (CPI) instead of Retail Price Index (RPI) figures to measure inflation, which is used in the calculations.
Mr Cureton said he believed there were many positive reasons for using CPI instead of RPI.
He said: “There have been calls for the Government to look at RPI v CPI as part of the proposed revaluation in 2015. However, it has, yet again, ignored these calls. Why commission people like Mary Portas to review the high street and make suggestions for improvements, which included a revaluation in 2015, then ignore the findings?
He added: “Changes in inflation can affect businesses in all areas from running costs, increases in wages due to the cost of living going up and the reluctance to plan ahead. The cancellation of the rating revaluation in 2015 and this will potentially be the final straw for many businesses that are already on the brink of survival.
“It has been strongly argued that CPI is a more accurate measure and actually reflects the inflation that most people experience.
“The RPI is more volatile and increases and decreases regularly, where as CPI changes more slowly,” Mr Cureton claimed.
Johnson Fellows provides rating services for a variety of sectors.