Bira, the 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.
Ahead of the Budget, the association has set out three changes it says would help small shops manage costs.
What Bira is asking for
- Targeted rates relief for independent retailers;
- An increase in the Employment Allowance, aimed at reducing staffing costs;
- Greater flexibility for small businesses to switch energy suppliers.
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 would go directly towards rates relief for high street businesses.
The warning lands at a difficult moment for independent gift shops and greetings card retailers, which the association describes as already working with tight margins. For those businesses, the Budget could be significant in determining whether they can manage costs and continue investing.
No measures have been confirmed. Bira's requests remain proposals, and the reported plan to use online marketplace VAT to fund rates relief has not been confirmed as a committed source of high street support.