Bira, the association that represents 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.
Ahead of the Budget, the group is pressing for three changes: targeted relief on business rates, an increase in the Employment Allowance to help bring down staffing costs, and greater flexibility for small businesses to switch energy suppliers.
Three requests ahead of the Budget
- Targeted rates relief for retailers facing steeper bills.
- A higher Employment Allowance to reduce the cost of employing staff.
- More flexibility for small firms changing energy supplier.
Bira has also welcomed reports that the government plans to fund business rates cuts by requiring online marketplaces to collect VAT. The association wants confirmation that the money raised would go directly towards rates relief for high street businesses.
Independent gift shops and greetings card retailers, already working with tight margins, therefore have a direct stake in the Budget, which could prove significant in determining their ability to manage costs and continue investing in their businesses.