Bira, the trade 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, before inflation is taken into account.
The figure frames the association's case ahead of the Budget, and it comes with three specific requests to government.
Three requests ahead of the Budget
Bira is calling for action on three cost lines that bear directly on independent shops:
- targeted business rates relief, to soften the projected rise in property-based costs;
- an increase in the Employment Allowance, put forward as a way to reduce staffing costs;
- greater flexibility for small businesses to switch energy suppliers.
VAT collected by online marketplaces
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 will go directly towards high street rates relief. It said it welcomed the reports themselves, while seeking clarity on how the revenue would be routed.
That condition matters to members because it would tie revenue from online sales to relief on the premises costs that physical shops carry.
Among Bira's members are independent gift shops and greetings card retailers, a segment the association describes as already working with tight margins. For those businesses, the Budget could prove significant in determining their ability to manage costs and continue investing.