Bira, which represents more than 6,000 independent retailers across the UK, has warned that the average independent retailer could face a business rates bill 25% higher next year than this year, before inflation is taken into account.
The association is calling on the government to provide targeted rates relief, to increase the Employment Allowance in order to reduce staffing costs, and to give small businesses greater flexibility when switching energy suppliers.
Three requests ahead of the Budget
- Targeted rates relief for independent retailers facing higher bills.
- A higher Employment Allowance to help lower staffing costs.
- More energy flexibility so small firms can change suppliers.
Bira has also welcomed reports that the government plans to fund business rates cuts by requiring online marketplaces to collect VAT. The association wants confirmation that the money raised would be directed specifically towards high street rates relief.
The issue is particularly pointed for independent gift shops and greetings card retailers, which the association describes as already operating on tight margins. For those businesses, the Budget could prove significant in deciding whether they can manage costs and continue investing in their operations.
No costed figures or timetable for the proposed measures have been set out, and it is not yet confirmed whether the reported VAT measure will appear in the Budget, or whether the revenue raised would be channelled into high street relief.