The British Independent Retailers Association (Bira), which includes gift retailers among its members, is urging Chancellor Jeremy Hunt to consider independent retailers when setting out his fiscal statement next month on 15 March, pointing out that they need extra support to survive the cost of living crisis and lower footfall on the high street since the pandemic.
“The Spring Budget is an opportunity for the Chancellor to put forward plans to grow the economy,” states Bira’s ceo Andrew Goodacre. “Recent figures suggest that inflation is falling quicker than expected and energy prices have also fallen significantly since last year’s chaos. This should allow the Chancellor to focus on growth and support for the smaller businesses on the high streets throughout the UK.”
Business rates are among the points that Bira would like the government to take into account, with Andrew stating that they still need wholesale reform, especially given that, for smaller retailers, the rateable values will increase by 10%. “We welcome the higher level of retail discount that will come into force in April, but we also want to see the multiplier permanently reduced for the small retailers to further offset the increase in rateable values.”
Bira would also like to see the government reduce the burden on smaller businesses, starting off with the reduction of NI contributions. “This could be done by reducing the % of NI paid, or increasing the employer’s allowance. The cost of employment is rising all the time and this small change will make a difference to the smaller retailers.”
On the subject of energy, Bira says that the cost to businesses remain very high and the energy support for indie retailers will fall from £6,400 per annum to £400 per annum (based on government figures). “With energy companies making record profits, the windfall tax received by the government will be higher than expected and should allow the government to do more to support businesses,” Andrew comments. “This support could be in the form of grants to improve the energy efficiency of the business. Bira would also like to see those business who signed contracts, when prices were at their highest last year, be allowed to renegotiate so they can benefit from lower wholesale prices. The government should also commit to reviewing the energy support scheme again in October when costs normally increase.”
Other items on Bira’s agenda include changes to the tax system with the introduction of an allowance for corporation tax. “We use allowances or income tax and believe that we could see a similar system for the smaller indie retailers. This change would reduce the tax burden and encourage businesses owners to invest for future growth.”
As the number of visitors starts to increase again, Bira also believes that the government should bring back VAT free shopping to the UK, maximizing the opportunity rather than dissuading visitors form spending money in the UK economy, and encourage investment by indie retailers in energy saving/carbon reduction measures. Plus, the Association believes there should also be a review of the apprenticeship scheme to create a system that allows business owners to attract talent to the retail sector.
“While the retail sector has changed over the years, there is still a vital role for smaller retail businesses in local communities,” Andrew states. “In the past 18 months we have seen internet sales fall, suggesting that the general public really value the businesses in the local community and the contribution to the local economy. Recent positive economic data should allow the Chancellor to be positive towards indie retailers in the Spring Budget,” he stated.
Top: Bira’s ceo Andrew Goodacre.
