BUDGET 2024
October/November 2024
housewareslive.net
‘This is clearly an anti-high street Budget’
The recent Government Budget increases, as National Insurance and minimum wage hikes place further strain on the industry. With an estimated additional £2.3 billion in National Insurance contributions coming into effect in April 2025, Housewares Magazine reports.
raise their cost base by £150,000 next year alone.” Mr Goodacre criticised the Government’s approach, noting that despite rhetoric about supporting small businesses and revitalising high streets, “their actions are achieving precisely the opposite.”
“This is clearly an anti-high street Budget. It appears the T
he post-budget discussions have now begun, with retailers facing a substantial rise in costs following the Government’s recent increases to National Insurance and
the minimum wage. The British retail sector is set to pay an estimated additional £2.3 billion in National Insurance contributions when the changes take effect in April 2025. Helen Dickinson, Chief Executive of the British Retail
Consortium (BRC), stated: “The increase in National Insurance contributions is yet another instance of piling taxes onto an already overburdened industry—a decision that will inevitably reduce investment in shops and jobs. “As a low-margin industry and the UK’s largest private-sector
employer, this scale of increase will have an immediate and disproportionate impact on both retailers and their supply chains, together employing 5.7 million people nationwide.” Meanwhile, Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), described it as “the worst Budget for independent retailers I have seen in my time representing the sector.”
He added: “Small retailers, who have already endured years of challenging trading conditions, are now facing a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they also face employer National Insurance rising to 15%, with the threshold lowered from £9,100 to £5,000. “Coupled with the minimum wage increase to £12.21, many of our members are telling us they simply cannot survive this onslaught. One member has already calculated these changes will
government is content for people to shop online and buy cheap imports,” he said. “This government has shown a complete disregard for the local businesses that provide jobs and create vibrant communities.” Bira’s Commercial Director, Jeff Moody, echoed these concerns: “These punishing measures will force many shop owners into making heart-breaking decisions about the future of their businesses. “What makes this particularly bitter is that these are family- run businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. Now they’re being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.” On the topic of retail crime, Chancellor Rachel Reeves commented: “We will scrap the effective immunity for low-value shoplifting… And having listened closely to organisations like the BRC and USDAW, I am allocating additional funding to crack down on organised gangs targeting retailers and to provide more its tracks.”
Additionally, the Government has announced an extension to the pandemic relief scheme, with eligible retail businesses set to receive a reduced 40% rate relief—down from 75%—in the next tax year, with a cap of £110,000.
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