Bira, which represents more than 6,000 independent retailers across the UK, has called for targeted support ahead of the Budget after warning that the average independent retailer could face a business rates bill 25% higher next year than this year, before inflation.
The association is seeking targeted rates relief, an increase in the Employment Allowance to help reduce staffing costs, and greater flexibility for small businesses to switch energy suppliers. Its requests therefore cover business rates, staffing costs and energy supply arrangements.
Bira has 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 will go directly towards high street rates relief.
The 25% comparison is presented before inflation, so the projected increase in the rates bill is separate from any additional inflationary effect. The association’s warning concerns next year’s bills relative to this year’s, and its requests are framed as calls for action in the Budget.
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.