By Liza Helps, Property Editor, Logistics Matters

THE OFFICE for National Statistics (ONS) confirmed this morning that the Consumer Prices Index (CPI) stood at 3.5% in September 2026, up from 3.1% in August. September’s CPI figure determines the annual uprating of England’s national business rates multipliers under the Local Government Finance Act 1988. Unless the Chancellor intervenes at the Autumn Budget on 28 October, that uprating will feed through into all five multipliers from 1 April 2027.

Industrial property faces a £302 million increase, followed by offices at £244 million and retail at £206 million according to analysis from global tax firm Ryan. The rise comes just a year after the 2026 revaluation increased rateable values in England by 19.4%.

Ryan’s practice leader of Property Tax Europe & Asia-Pacific said: “September’s inflation figure sets the basis for a £1.1 billion rise in business rates in England next April, unless the Chancellor intervenes. The UK already has the highest property taxes of any major economy in the world at 3.7% of GDP. Annual inflation uprating adds to recurring property costs, leaving businesses with less capital to open stores, build warehouses or refurbish offices. It is those investments that create jobs and growth. The Chancellor should use the Budget to limit that increase and leave businesses with more capital to invest and grow.”

Wider reform of the system is expected at the Autumn Budget. The Government has committed to returning to business rates reform, including Small Business Rates Relief, having already confirmed a 20% cut for pubs, social clubs and live music venues from April 2027.

The Treasury is reported to be considering raising the £12,000 threshold at which small businesses pay no rates, which has not changed since 2017.

Probyn added: “The test for any Budget measures will be whether it strengthens the conditions for investment and growth across the business rates system as a whole, rather than simply transferring the burden from one group of ratepayers to another.”

Business rates are devolved to Scotland, Wales and Northern Ireland.

Last week Logistics Matters reported that the Chancellor had vetoed a ‘warehouse tax’ in favour of making online platforms responsible for collecting VAT from sellers with annual turnover exceeding £90,000, closing loopholes exploited by overseas retailers to avoid tax and undercut British businesses. The move is expected to raise close to £1 billion.