Bira has welcomed the update from this week’s Budget, saying that the changes to business rates is “a win” for independent retailers.
Andrew Goodacre, CEO of Bira (the British Independent Retailers Association), said the increase in Small Business Rates Relief and the decision to link other rates rises to inflation should be seen as a win for the association and its members. However, he said the lack of help on employment and energy costs was a missed opportunity.
In the Budget, delivered by Chancellor John Healey (pictured above) this week, Small Business Rates Relief was extended to businesses with a rateable value of up to £18,000, up from £12,000. Businesses above that threshold will see rates increases linked to inflation, at 3.5% next year, avoiding the 25% increase that would have happened without intervention.
The Chancellor said the change would take around 70,000 more businesses out of business rates altogether, meaning half of all shops, restaurants and gyms will pay no business rates at all.
Mr Goodacre (below) added: “This Budget has not contained any of the nasty surprises from the past two years. In fact, Bira raised various issues as genuine concerns on several occasions in the run-up to the Budget, and we are delighted that the Treasury has listened. This is a real win for independent retailers. We would rather not have seen any increases at all, and we will push for that next year.”
The National Living Wage and National Minimum Wage will rise by 3.9%, an increase of 50p per hour for workers aged 21 and over, with lower increases for those aged 18 to 20. However, there were no changes to employer National Insurance contributions or to energy costs.
The Budget also introduced a £90,000 threshold before VAT is charged on online sales from UK businesses.
“On the negative side, the lack of measures to reduce the cost of employment and energy is disappointing,” said Mr Goodacre. “Increasing the Employment Allowance would have been a real help to small employers, and this was a missed opportunity.
“Finally, we support measures to reduce the impact of the cost of living on the general public, and we hope this boosts consumer confidence as we enter the crucial ‘golden quarter’ for the retail sector.”
