BIRA has condemned this week’s (30 October, 2024) budget as the most damaging for independent retailers in recent memory.
BIRA said the budget has delivered a triple blow of doubled business rates, increased National Insurance and higher minimum wage costs, threatening widespread high street closures.
BIRA, representing over 6,000 independent retailers across the UK, reports the reduction in business rates relief from 75% to 40% (capped at £110k) from April 2025 will more than double costs for many retailers.
This comes alongside employer National Insurance contributions rising from 13.8% to 15%, with the earnings threshold slashed from £9,100 to £5,000, and the minimum wage increasing to £12.21 per hour for over-21s.
Andrew Goodacre, ceo of BIRA, said: “This is without doubt the worst budget for independent retailers I have seen in my time representing the sector. The government’s actions today show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.
“Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they’re hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught.
“One member has already calculated these changes will increase their cost base by £150,000 next year alone.
“For all the government’s rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their businesses’ future.
“What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They’re now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.
“This is clearly an anti-high street budget. I can only assume that the government is happy for working people to shop online and buy cheap imports. This government has shown complete disregard for the local businesses that create jobs and maintain vibrant communities.”
A recent survey released by BIRA showed that 46% of retailers reported worse trading in early 2024 compared to 2023, with 42.6% expressing low confidence for Q2 2024.
Andrew said: “This budget betrays every independent retailer who has fought to keep their business alive through recent challenges. It’s not just disappointing – it’s potentially catastrophic for Britain’s high streets.“
