“Today’s RPI reading of 3.9% spells further bad news for ratepayers on top of April’s revaluation, as it is the basis on which rates bills for 2018-19 will be calculated. While ratepayers will be comforted that business rates indexation will move to CPI from 2020, today’s announcement piles further pressure on an embattled Philip Hammond to provide some relief to businesses already facing higher inflation. His leading option will be cap the increase at 2%, as his predecessor did for two years running.

“Mr Hammond has indicated that he will look to change the law with regard the much publicised and heavily criticised “staircase tax” whilst Greg Clark has suggested that a business rates review is at an advanced stage. A cap on the increase in rates liability for 2018-2019 and legislation to remove the staircase tax would be a start but we would encourage the Chancellor to go further; a commitment to more frequent revaluations and reform of the new appeals system are also required.”