Bira Urges Chancellor to Safeguard Independent Retail in Upcoming Autumn Statement
Posted on in Business News
The British Independent Retailers Association (Bira) is set to address critical issues facing the UK's high streets at its upcoming Annual Conference, marking the event's return after a six-year absence.
Bira, which works with over 6,000 independent businesses of all sizes across the UK, has emphasised the critical need to extend the Retail, Hospitality and Leisure (RHL) relief on business rates.
This plea comes amidst alarming statistics from PwC, revealing that the UK retail sector faced net closures of 12 outlets per day in the first half of 2024, resulting in 2,284 fewer high street, shopping centre, and out-of-town stores.
In a submission to the Treasury, Bira has urged the government to freeze the small business multiplier at 49.9p and continue the Small Business Rate Relief (SBRR) scheme, and maintain the RHL relief payment at a 75% discount until the wholesale reform of business rates is completed.. These measures are seen as vital lifelines for independent retailers struggling in a challenging economic climate.
Andrew Goodacre, CEO of Bira, said: "Business rates reliefs have been a crucial support mechanism for years, and they've never been more needed than now. We are deeply concerned that the new Labour Government might not extend the RHL relief in its efforts to address the £22 billion deficit in the UK's finances. However, any increase in rates payable by smaller high street businesses would be catastrophic for our sector, threatening their ability to sustain operations and invest in growth."
Mr Goodacre added: "If this rates relief comes to an end, coupled with the likely 6% increase in the National Living Wage, many independent retailers will face an existential crisis. Bira is calling on the Chancellor to live up to her conference speech where she stated that 'high street businesses breath new live into communities' but 'high street businesses are punished by an outdated system of business rates'."
Bira believes the Chancellor can only make this happen by retaining these reliefs that are not just about supporting individual businesses, but also maintaining the vibrancy and diversity of UK high streets, which play a crucial role in local economies and communities."
The association said it awaits the Autumn Statement, scheduled for October 30, hoping for a clear signal of support for the independent retail sector from the new government.