Bira, the association representing 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 — a comparison drawn before inflation is taken into account.
Its membership includes independent gift shops and greetings card retailers, retail sectors that Bira says are already working with tight margins.
Three requests ahead of the Budget
Bira is calling for targeted rates relief, an increase in the Employment Allowance to help reduce staffing costs, and greater flexibility for small businesses seeking to switch energy suppliers. Taken together, the three measures address the property-based costs, employment costs and energy contracts that the association identifies as pressure points for independent shops.
Bira's warning focuses on the scale of the rates increase it expects next year; its three requests set out what it believes would ease the pressure on independent retailers.
VAT on online marketplaces
The association has also welcomed reports that the government plans to fund business rates cuts by requiring online marketplaces to collect VAT. Bira wants confirmation that the money raised will go directly towards high street rates relief.
What the Budget decides
For independent gift shops and greetings card retailers, the Budget could prove significant in determining their ability to manage costs and continue investing in their businesses, according to the association.