Changes to business rates could negatively affect companies with commercial insurance, a leading organisation asserts.
The Confederation of British Industry (CBI) claims proposals made in the business rates supplement bill could cost firms up to £800 million in new taxes.
It states this will be in addition to the scheduled five per cent increase in business rates, which could affect retailers or manufacturers with commercial insurance.
John Cridland, the CBI's deputy director-general, warns that the plans to tax companies in order to pay for infrastructure projects in the local area could backfire.
He states: "These extra taxes on business could harm local economies by placing extra financial demands on firms when they can least afford it."
The group proposes amending the bill to ensure commercial insurance holders can vote on whether to accept each project before they are required to support it.
Earlier this month, the Bank of England announced that the base interest rate would be cut by 50 basis points to 0.5 per cent.
