A government scheme to cushion businesses in England against rates rises does not go far enough, retailer representatives have said.

Community pharmacy representatives have previously slammed Westminster proposals for business rates to increase by up to 12.5 per cent in April.

And the government has now confirmed the transitional arrangements for business rates to be raised over the next five years, including the 12.5 per cent increase cap for 2010/11.

The arrangements would leave retailers “forking out” a quarter of England’s business rates revenue, the British Retail Consortium (BRC) said, despite making up “just” 8 per cent of GDP. The cap will rise to 25 per cent by 2014/15.

The government should have capped rates rises at 5 per cent for April to help retailers during the recession recovery, the BRC said.

Buying groups Numark and Avicenna and multiple Day Lewis last month hit out at the hike’s potential effect on pharmacies, when the transitional arrangements were still under consultation.

A 12.5 per cent increase could be “another nail in the coffin” for independent pharmacies, Numark director of professional and training services Mimi Lau said.