The British Independent Retailers Association (Bira) says the Government’s plans to increase National Insurance contributions could put a further burden on struggling indies.

On Tuesday 8 September 2021, Boris Johnson announced plans to hike National Insurance contributions by 1.25% from next April; a move designed to help fund a shortfall in social care. Over three years, it is forecast the levy will raise £36 billion.

However, while Bira appreciates the strain on the NHS and social care system, it is concerned this type of tax hike will put a further burden on independent retailers that are already struggling post-pandemic.

Andrew Goodacre, Bira’s CEO, says; “We all recognise the problems faced by the NHS and the need to improve our social care system. However, of all the options available to the Government, it is disappointing increases in National Insurance have been chosen because of the impact on lower-paid workers and small businesses.

“National Insurance has been a burden for some time. On top of this, we will no doubt see above-inflation increases to the National Minimum Wage announced in the autumn; compounding the impact of these increases.

“Despite all the positive economic data, this recovery is still very fragile. Independent retailers will need all their reliance and determination to withstand these increases; managing increased levels of debt, rising prices and the supply chain problems. We need more support, not more burden.”

For further information on Bira, please click here.