BRC says Budget offers retailers ‘no breathing room’ on costs
In response to yesterday’s Budget announcement, the British Retail Consortium (BRC) said there was no breathing room for UK retailers, with costs set to climb.
It described the announcement on business rates as “smoke and mirrors”. It said the Chancellor’s headline announcement that he will “freeze rates in real terms” in fact means a 3.5% increase, which will add around £250 million to bills next April, even though 70,000 small high street businesses will no longer pay rates.
Subscribe to TRBIt also warned that a rise in the National Living Wage and no cut to employer National Insurance will add another £2 billion to employment costs, on top of the £6.5 billion of extra costs retailers have faced over the past two years. More than 120,000 retail jobs have already been lost since 2024.
The BRC said the Budget did too little on energy, with the industry’s electricity costs set to rise by £440 million this year. It also called for a tax-free shopping scheme, said new rules for online marketplaces collecting VAT must be practical, and warned that the tariff cuts on food imports will barely offset rising supermarket costs.
Helen Dickinson, chief executive of the British Retail Consortium, said: “The Budget will see retail costs keep climbing as the Chancellor failed to provide the breathing space he promised.
“Retail faces £41 billion in business taxes this year, over 120,000 jobs have been lost in just two years, and one in seven shops lies empty.
“Yet employment costs continue to rise. Business rates continue to rise. The Government cannot keep talking about reviving high streets while failing to address the rising tide of costs that holds them back.”
Meanwhile, the Federation of Independent Retailers (the Fed) has welcomed the announcement that the government will increase eligibility for Small Business Rates Relief (SBRR), but said the cost of doing business for small shops remains too high.
The Fed’s national president Hemanshu Patel said: “We are looking closely at changes that look likely to be made to Small Business Rates Relief that could benefit some of our members.
“However, the message from the Fed remains that the cost of business remains too high. Our shops are crucial employers and also a familiar face in the communities they serve.
“It is important that the government continues to engage with the Fed to ensure that small retail businesses can survive.”
