The British Independent Retailers Association (Bira) is raising concerns the business rates ‘discount’ announced in this week’s Budget could actually cost indies more. Bira was initially ‘pleased’ the Chancellor of the Exchequer had addressed business rates and some of the other burdens faced by indie retailers in his Autumn Statement.
However, Andrew Goodacre, Bira CEO, says; “The devil is in the detail. The rates bill for this year was reduced to 25% (of normal levels) in response to Covid. Therefore, reducing rates by 50% next year is in fact a 100% increase on what businesses are actually paying. On top of everything else, this will be a challenge. We believe more could have been done. This is especially true considering all the other inflation-busting increases such as wages, energy, supply chain, etc.
“We also welcome the use of rates relief to encourage investment in properties and the shorter time periods between rates reviews (reduced from five to three years). The problem is that 2022 will be more about survival than investment. It will be a really difficult year for the high street, and we hoped for more recognition of this to protect local communities, jobs and livelihoods.”
Also responding to the Budget announcement is Chris Brook-Carter, chief executive of the retail industry charity the Retail Trust.
“Financial stress can cause a range of mental health issues, so we very much welcome the increase in national living wage in today’s budget. This has the potential to provide much-needed relief for thousands of retail workers who have faced extraordinary financial, physical and emotional pressures over the last year and a half.
“As a charity, the Retail Trust has given out £1.2million of non-repayable financial aid since the start of the pandemic to help people working in the industry to pay bills and keep a roof over their heads. We have also run more than 11,000 counselling sessions for those struggling with mental health challenges.
“Our only hope is that the increased wages bill that will follow doesn’t lead to more job losses or retailers having to close more stores. Retail employment is absolutely vital in tackling issues like social mobility and supporting young people into jobs and training. The measures announced around business rates will be really important when it comes to helping retailers’ ongoing recovery from the pandemic.”
For further information on Bira, please click here. To visit the Retail Trust’s website, please click here.
