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 for targeted rates relief, an increase in the Employment Allowance to help reduce staffing costs, and greater flexibility for small businesses to switch energy suppliers. Together, the requests address three cost pressures facing independent retailers: property-based rates, staff costs and energy contracts.
Bira has also welcomed reports that the government plans to fund business rates cuts by requiring online marketplaces to collect VAT. It wants confirmation that the money raised would go directly towards high street rates relief.
For independent gift shops and greetings card retailers already working with tight margins, Bira said the Budget could prove significant in determining their ability to manage costs and continue investing in their businesses. Its warning describes a potential increase in next year’s rates bill before inflation, not a confirmed outcome, while its proposals focus on targeted relief and practical flexibility. The reported VAT plan has not been confirmed as settled policy, and Bira’s call for confirmation highlights that the link between the revenue raised and high street relief is still to be established.