Government Must Ditch Outdated RPI

The ALMR has echoed the Office for National Statistics’ sentiments about the unsuitability of using RPI as a measure of inflation and called on the Government bring forward its 2020 switch to CPI for business rates to help reduce burdens for eating and drinking out businesses.

ALMR Chief Executive Kate Nicholls said: “The ALMR has repeatedly called for the introduction of CPI for businesses rates and a move away from the current, unworkable system. The Government’s own statistics body agrees that the current system of using RPI is totally discredited and only increases costs on employers.

“The Government’s plan to switch to CPI in 2020 is not soon enough and, given the statements of the ONS and spiralling rates costs for businesses, must take action immediately. We need a move from RPI to CPI in this Parliament in order to support hardworking businesses and eradicate unmerited and unaffordable cost burdens that are stifling investment and employment.

“The move would save eating and drinking out businesses £40 million and would help facilitate discussion between the sector and service providers such as PPL and PRS as well as subscription services.

“This simple switch could help minimise inflationary pressures in the supply chain at a time of considerable economic and political uncertainty for the UK.

“This statement by the ONS, that RPI is unfit for purpose, validates what we have been saying to the Government for years. We need action by the Government now, not in 2020, if eating and drinking out venues are to continue to grow.”