Plea: Andrew Goodacre is chief exec of the British Independent Retailers Association
For an apocalyptic vision of the future of the High Street, look no further than these words – penned by none other than our current Prime Minister in April: ‘Businesses boarded up, independent shops forced to close and community assets like banks, pharmacies and post offices disappearing.’
I couldn’t agree more. I’ve devoted my career to curating our high streets, as chief executive of the British Independent Retailers Association (BIRA), and prior to that, decades working in the hospitality industry.
So why does the autumn Budget risk begetting the very high street destruction that you say you want to avoid?
You got some hard truths from more than 80 retailers this week: industry costs could rise by more than £7billion once last month’s Budget measures kick in. They warned of higher inflation, slowing pay growth, shop closures and job cuts.
So much for a Budget aimed at promoting investment and growth. We share the grave concerns over the costs of higher employer National Insurance Contributions and an inflation-busting rise in the minimum wage.
Our 4,500 members run significantly smaller operations than the signatories to that letter; they’re even less able to absorb higher costs.
But we don’t feel that letter goes nearly far enough. BIRA members are reeling from the coming increase in business rates, which are set to double as the tax reduction introduced during the pandemic drops to 40 per cent from 75 per cent.
We campaigned vigorously to retain this lifeline for the smaller retailers. It’s senseless to lift business rates after making a manifesto commitment to reduce the tax burden on shops and revitalise high streets.
Many of our members are preparing to contract their operations by reducing opening hours and cutting head-count.
Gone are the days when youngsters gained their first taste of the working world through Saturday jobs at shops.
Some members see their cost bases expanding by as much as an incomprehensible £150,000 next year. Many fear for their very survival.
This Budget has sent shivers throughout the retail and hospitality industries. But the potential damage to the independents is incalculable.
Governments have waxed lyrically about the importance of the community; consumers consistently plead for thriving high streets filled with bustling independent shops.
This is no way to achieve those goals.
This Government has now made a commitment to reducing business rates in 2026.
Indie retailers cannot understand why business rates have been increased, only to be reduced again.
We call on the Chancellor to reverse the increase – high street shops can take no more.
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