A new podcast from Bira has highlighted that independent retailers are dealing with business rates hikes of up to 45%, increased wage expenses, and a four-year delay in addressing unfair competition.
The latest episode of Bira’s High Street Matters podcast, titled The Autumn Budget – A Reaction from Independent Retailers, examines the gap between government promises of “transformation” and the reality facing shops on the high street.
Hosted by Andrew Goodacre, CEO of Bira, the episode features John Jones, managing partner of Philip Morris & Son in Hereford and current president of Bira, who shares his assessment of what the Budget means for his 170-year-old family department store.
“Initially, it sounded all right. I thought there were a few things that supported retail. Unfortunately, the devil is in the detail. What the Chancellor announced and what it turned out to be were two very different things. I thought rates were going to be all right – it’s turned out we’ve got a 45% increase by the time transition relief runs out.”
The podcast reveals how the government’s promised “transformation” of business rates has failed to materialise, with most independent retailers facing significant increases despite new, lower multipliers.
Jones explains that despite one of his rents going down, his rateable value shot up, leaving it over 50% above his actual rent. “It feels like we’ve been misled,” he continues. “It’s being spun as support for small retail, but it’s the opposite. Big retailers may pay less, while independents pay more. It makes no sense.”
“Major supermarkets are seeing around a 1.6% increase, meaning they will actually pay £100,000 less next year,” adds Goodacre. “Yet independent shops are facing increases of 45%. How is that levelling the playing field?”
The episode also tackles the four-year delay in closing the low-value import duty loophole, which allows overseas sellers to flood the UK market with goods that avoid VAT, duty, and safety standards.
“Items come in very cheaply from abroad,” says Jones. “They bypass product safety laws, employment law, health and safety – everything we must comply with. America closed their loophole in less than six months. Europe’s doing it next year. Why are we waiting until 2029?”
The podcast also examines the impact of National Living Wage increases.
With the rate for 21+ rising by 4.1% and the 18-20 rate jumping 8.5%, Jones warns this could affect youth employment: “If I have to pay an 18-year-old almost the same as someone with 10 years’ experience, I’m more likely to employ the experienced person. I think this will increase youth unemployment.”
When asked if there was anything positive in the Budget for independent retailers, Jones was blunt: “Honestly? No. There is nothing for growth – nothing that drives growth. And without growth, there’s no investment, no confidence, and no reason to take risks.”
Goodacre adds, “The Office for Budget Responsibility says the same: no growth measures. Growth is what gives consumers money to spend on the high street. Without it, discretionary spending falls. Independent retailers will find ways to adapt, but this Budget has made their job significantly harder.”
The podcast is available by searching ‘High Street Matters’ online. More resources and support for independent retailers are available via Bira’s website.