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Plea: Andrew Goodacre is chief executive of the British Association of Independent Retailers
For an apocalyptic vision of the future of the High Street, just these words, written by none other than our current Prime Minister in April: “Businesses closed, independent shops forced to close and community assets such as banks, pharmacies and post offices.” offices disappearing.’
I couldn’t agree more. I have dedicated my career to looking after our high streets, as chief executive of the British Independent Retailers Association (BIRA), and before that, I worked for decades in the hospitality industry.
So why does the fall budget risk engendering the destruction you say you want to avoid?
This week we heard some hard truths from more than 80 retailers: industry costs could rise by more than £7bn once last month’s budget measures come into effect. They warned of higher inflation, slowing wage growth, store closures and job cuts.
So much for a budget aimed at promoting investment and growth. We share serious concerns about the costs of higher employers’ national insurance contributions and an increase in the minimum wage that would stamp out inflation.
Our 4,500 members run significantly smaller operations than those of the signatories of that letter; they are even less able to absorb higher costs.
But we don’t think that letter goes far enough. BIRA members are reeling from the upcoming rise in business rates, which are set to double as the tax cut introduced during the pandemic falls from 75 per cent to 40 per cent.
We campaigned vigorously to preserve this lifeline for smaller retailers. There is no point in raising business rates after making a manifesto commitment to reduce the tax burden on shops and revitalize high streets.
Many of our members are preparing to contract their operations by reducing opening hours and cutting staff.
Gone are the days when young people got their first taste of the world of work by working in stores on Saturdays.
Some members see their cost bases expanding to an incomprehensible £150,000 next year. Many fear for their own survival.
This budget has sent shivers through the retail and hospitality sectors. But the potential damage to independents is incalculable.
Governments have spoken lyrically of the importance of community; Consumers consistently advocate for thriving streets filled with lively independent shops.
This is no way to achieve those goals.
This Government has now committed to reducing business rates in 2026.
Independent retailers cannot understand why business rates have been increased and then reduced again.
We call on the Chancellor to reverse the increase – high street shops can’t take any more.
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