In a submission to the Treasury, the British Independent Retailers Association (Bira) has urged the government to freeze the small business multiplier at 49.9p and continue the Small Business Rate Relief (SBRR) scheme, and maintain the RHL (Retail, Hospitality and Leisure) relief payment at a 75% discount until the wholesale reform of business rates is completed.
The trade association, which works with more than 6,000 independent businesses of all sizes across the UK, said these measures are seen as vital lifelines for independent retailers struggling in a challenging economic climate.
Bira CEO Andrew Goodacre commented: “Business rates reliefs have been a crucial support mechanism for years, and they’ve never been more needed than now. We are deeply concerned that the new Labour government might not extend the RHL relief in its efforts to address the £22 billion deficit in the UK’s finances. However, any increase in rates payable by smaller high street businesses would be catastrophic for our sector, threatening their ability to sustain operations and invest in growth.”
He added: “If this rates relief comes to an end, coupled with the likely 6% increase in the National Living Wage, many independent retailers will face an existential crisis. Bira is calling on the Chancellor to live up to her conference speech where she stated that ‘high street businesses breath new live into communities’ but ‘high street businesses are punished by an outdated system of business rates’.”
Bira believes the Chancellor can only make this happen by retaining these reliefs that are not just about supporting individual businesses, but also maintaining the vibrancy and diversity of UK high streets, which play a crucial role in local economies and communities.
The association said it awaits the Autumn Statement, scheduled for October 30, hoping for a clear signal of support for the independent retail sector from the new government.
