Bira, an association representing more than 6,000 independent retailers across the UK, has warned that the average independent retailer could face a business rates bill 25% higher next year than this year, before inflation is taken into account.
The association is calling for targeted rates relief, an increase in the Employment Allowance to help reduce staffing costs, and greater flexibility for small businesses to switch energy suppliers.
Bira also welcomed reports that the government plans to fund business rates cuts by requiring online marketplaces to collect VAT. It wants confirmation that the money raised would go directly towards high street rates relief.
The warning places business rates alongside staffing and energy costs among the pressures the association says independent retailers are facing. Bira’s requests focus on targeted relief, with the Employment Allowance cited as a way to lower staffing costs and supplier switching presented as a route to greater energy flexibility.
For independent gift shops and greetings card retailers already working with tight margins, the Budget could prove significant in determining their ability to manage costs and continue investing in their businesses.
The association’s case links the three cost areas to specific remedies. It also ties the reported VAT plan to a clear outcome: high street rates relief, rather than leaving the use of the money unspecified.