Bira, an 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 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. It presents the three measures as support that would help independent retailers with rising costs.
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.
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.
The warning places the prospective rates increase alongside staffing and energy costs as pressures facing independent retail. Bira's requests focus on rates relief, employment costs and energy supplier choice, while its response to the reported VAT plan seeks a link between online marketplace collections and relief for high street premises.