Andrew Goodacre, ceo of BIRA outlines practical steps for independent retailers following the spring statement in his monthly column.
The general media has aptly dubbed this month ‘awful April’ due to the numerous consumer price increases taking effect. However, for independent retailers and businesses across the UK, the reality is even more challenging.
April is now upon us and as we approach the end of the tax year, independent retailers are facing a perfect storm of cost increases that threaten to squeeze already tight margins. Business rates are rising by a staggering 140%, the National Living Wage is increasing by 6.7% and National Insurance Contributions are also going up. These compounding pressures come at a time when many businesses are still recovering from the impacts of the pandemic.
Since these challenges were first announced, BIRA has been actively engaging with the government, urging it to reconsider its policies and provide more substantial support for independent retailers. While our efforts have not yet yielded the changes we’ve been advocating for, we remain undeterred.
Most recently, we submitted a comprehensive response to the proposed business rates reform, once again emphasising that the current proposals fall significantly short of addressing the genuine needs of independent retailers. As the saying goes, we may have lost a battle, but the war continues.
While we continue to campaign for policy changes at the governmental level, there are immediate steps you can take to potentially reduce some of the costs coming your way.
I strongly urge all members to verify that your rates bill is correct. You can do this easily by visiting the government website: https://www.gov.uk/find-business-rates. The process requires only your postcode and is certainly worth the time as mistakes can occur. If you believe there are inaccuracies, don’t hesitate to contact your local authority and the local valuation office.
Some of you may actually see your National Insurance Contributions decrease in the new tax year. This is due to the employers’ allowance for NICs being increased from £5,000 to £10,500. We believe that this increase means that if you employ fewer than seven people, you should pay less in NICs. It’s certainly worth consulting with your accountant or whoever manages your payroll to ensure the full allowance is being claimed.
With costs rising more rapidly than sales, I fully understand the immense difficulties facing businesses on high streets throughout the UK. The economic landscape for independent retailers was challenging even before these latest increases and the lack of targeted support in the Spring Statement has only compounded these issues.
At BIRA, we are working tirelessly to ensure that ‘your voice’ is heard by all relevant government departments. As the representative body for independent retailers across Britain, we continue to campaign on critical issues including retail crime, business rates and legislation that impacts your businesses.
Remember that BIRA members have access to our free advice line service, BIRA Legal, in partnership with WorkNest. This service can provide valuable guidance on navigating these challenging economic conditions.
The road ahead remains difficult, but independent retailers have consistently demonstrated remarkable resilience and adaptability. Through Retra and the wider BIRA network, we will continue to champion the cause of independent traders and shopkeepers, focusing on revitalising and preserving the high street.
Together, we form a powerful collective voice for independent retail in the UK. While the Spring Statement may not have delivered the support we had hoped for, we remain committed to fighting for policies that recognise the vital contribution of independent retailers to our economy and communities.
As we navigate through this ‘awful April’ and beyond, BIRA will continue to provide you with the support, resources and representation you need to weather these challenges and emerge stronger.
