WORRIED firms are bracing themselves for a £2.5billion Labour tax double whammy.
They will be clobbered twice — first by an inflation rate increase in business rates in April, then by a Rachel Reeves surcharge, experts say.
Business rates are the property tax that companies must pay just to occupy their shops, pubs, factories and offices.
The Tories last night warned thousands of struggling firms would be crippled.
Shadow Housing Secretary James Cleverly said: “Once again, Labour is hammering the high street. Raising business rates for thousands of hard-working small businesses across England was one of Labour’s first acts in office.
“And despite our opposition to it, and clear evidence of the damaging impact it will have, they have pressed ahead — consequences be damned.”
The first squeeze will come in April when bills rise automatically with inflation.
The Bank of England expects the rate will hit four per cent next month.
Global tax firm Ryan says that would add £1.11billion to business rates across England.
The second blow will come when Chancellor Ms Reeves introduces a supplementary multiplier on larger premises next year.
The multiplier is the figure used to calculate how much tax a company pays for every pound of its property’s value.
By adding up to 10p for sites worth more than £500,000, about 17,000 businesses will see much bigger bills.
Experts warned this will shift about £1.38billion of costs on to larger companies.
Ryan’s Alex Probyn said businesses would be left “staring down the barrel of an unavoidable double hit”.
He warned it “risks undermining the UK’s competitiveness at a critical time for the economy”.
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