A leading independent retailers’ association has criticised the Budget for falling short on promised business rates reform and delaying action on unfair competition from overseas sellers, warning that thousands of independent shops will face higher costs despite government claims of support for the high street.

Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), says the new business rates multipliers represented “tinkering around the edges,” rather than the transformation promised by government.

“The original proposals talked about reducing multipliers by up to 20p for smaller properties and 10p for larger ones,” says Goodacre. “What we’ve actually got is a 5p reduction – and even that is largely down to the rates revaluation rather than genuine reform. The government has missed a real opportunity to tackle an unfair tax that’s crippling high street businesses.”

The Budget introduces lower multipliers of 38.2p for properties with rateable values below £51,000 and 43p for those between £51,000 and £500,000 from April 2026.

However, Goodacre warns that despite the lower multipliers, many independent retailers will face bill increases of up to 30% next year compared to this year. “This is not the transformation we were promised,” he continues. “Nearly all our members will be paying significantly more in rates next year. That’s simply unacceptable when businesses are already struggling with rising costs.”

Bira did welcome the two-year extension of Small Business Rates Relief, which will now continue even if shop owners expand into a second premises – a move Goodacre describes as “genuinely helpful for growing independents.”

However, he reserved his strongest criticism for the delayed closure of the low-value import duty loophole, which will not take effect until 2029.

“Why wait four years when the USA closed their loophole in six months, and Europe is doing the same next year?” says Goodacre. “Four years is an extraordinary amount of time. We’re being told to live with unfair competition from overseas sellers dodging duties, VAT and safety standards, while our members play by the rules and pay their taxes. We could learn from other countries that have acted far more quickly.”

The loophole has allowed cheap goods to flood the UK market without customs charges, undercutting legitimate retailers. Goodacre says the delay would cost independent shops dearly during the intervening years.

With the National Living Wage rising to £12.71 from April and the 18-20 rate increasing to £10.85, Goodacre also warns that independent retailers were facing a “perfect storm” of cost pressures.

“We support higher wages, but these costs have to be absorbed by businesses already on tight margins,” he says. “Business rates aren’t coming down for most shops, despite government claims, labour costs are rising well above inflation, and we’ve got another four years of unfair competition to endure. This is not a budget that independent retailers will welcome.”

He adds that while measures such as the £150 energy bill reduction and extension of the 5p fuel duty cut were welcome, they represented “modest relief” after years of a cost-of-living crisis that had hammered consumer spending and shop viability.

For further information on Bira, please click here.