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 warning frames the association's calls ahead of the Budget. Bira is seeking targeted rates relief, an increase in the Employment Allowance to help reduce staffing costs, and greater flexibility for small businesses to switch energy suppliers. Each measure addresses a different pressure named by the association: the possible rates increase, staffing costs and energy arrangements.
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. That condition matters to Bira's position because the reported plan links a new VAT collection requirement with support for high street businesses.
For independent gift shops and greetings card retailers already working with tight margins, the Budget could prove significant in determining their ability to manage costs and continue investing in their businesses. Bira's representations set out the support it believes those retailers need, while the reported VAT plan remains subject to confirmation on how the proceeds would be used.