The Office for National Statistics reported Consumer Prices Index inflation of 3.5% in September, up from 3.1% in August.
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September’s CPI figure is used to determine the annual uprating of England’s business rates multipliers.
Ryan estimated the increase would add around £1.1bn to business rates bills across England from April next year unless Chancellor John Healey intervenes at the Autumn Budget on 28 October.
Hospitality impact
Properties classed as “Other”, including hospitality, leisure, education, health, transport and utilities, face the largest combined increase at £352m.
Of that, £129m is expected to fall on hospitality, leisure and accommodation premises, including pubs, restaurants, hotels, holiday lets and leisure attractions.
Industrial properties face an estimated £302m increase, followed by offices at £244m and retail at £206m.
The increase follows the 2026 business rates revaluation, which Ryan said increased rateable values in England by 19.4%.
Alex Probyn, practice leader of property tax for Europe and Asia-Pacific at Ryan, said: “September’s inflation figure sets the basis for a £1.1bn rise in business rates in England next April, unless the Chancellor intervenes.
“Annual inflation uprating adds to recurring property costs, leaving businesses with less capital to open stores, build warehouses or refurbish offices.”
Budget pressure
The Government has already confirmed a 20% business rates cut for pubs, social clubs and live music venues from April 2027.
Ministers are also reportedly considering increasing the Small Business Rates Relief threshold from £12,000 to £18,000 as part of wider reforms expected at the Budget.
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 in Scotland, Wales and Northern Ireland.
