OPINION
FALLING SHORT
Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), reacts last month’s Autumn Budget
T
his is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government’s actions
show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets. Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they’re hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught. One member has already calculated these changes will increase their cost base by £150,000 next year alone. For all the government’s rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their businesses’ future. What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They’re now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.
www.bikebiz.com
This is clearly an anti-high street Budget. I can only assume that the government is happy for working people to shop online and buy cheap imports. This government has shown complete disregard for the local businesses that create jobs and maintain vibrant communities. This Budget betrays every independent retailer who has fought to keep their business alive through recent challenges. It’s not just disappointing - it’s potentially catastrophic for Britain’s high streets.
The Association of Cycle Traders, which is part of Bira Group, represents more than 6,000 independent retailers across the UK, and has reported the reduction in business rates relief from 75% to 40% (capped at £110k) from April 2025 will “more than double” costs for many retailers.
This comes alongside employer National Insurance contributions rising from 13.8% to 15%, with the earnings threshold cut from £9,100 to £5,000, and the minimum wage increasing to £12.21 per hour for over-21s.
A recent survey released by Bira showed that 46% of retailers reported worse trading in early 2024 compared to 2023, with 42.6% expressing low confidence for Q2 2024.
December 2024 | 51
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
