Budget ‘positive’ for small traders

The association representing NI’s independent retail trade has welcomed Wednesday’s Budget as positive.

Chief executive of the Northern Ireland Independent Retail Trade Association (NIIRTA), Glyn Roberts, welcomed reductions by Chancellor George Osborne on corporation tax and a rise in tax thresholds.

“Overall this is positive budget for small traders with its emphasis on lowering tax, reforming business rates and supporting the next generation of entrepreneurs,” Mr Roberts said.

“The cutting of corporation tax to 17 per cent will clearly reduce the cost of a local 12.5 per cent for the NI Executive Budget.”

Mr Roberts also praised the freezing of fuel duty, saying many NIIRTA members use vans daily for delivery and will benefit greatly.

“Taking 1.3 million people out of tax is a positive measure as means more spending in our retail sector across the UK,” he added.

However, the NIIRTA chief questioned whether the Chancellor’s extension to the Small Business Rates Relief Scheme would be replicated by the Northern Ireland Executive, saying local ministers had “some serious catching up to do with reforming our business rates”.

“If a typical corner shop in Barnstaple will pay no business rates under this Budget, why cannot this be the case for corner shops in Ballymena or any other local towns?” he said.

“We await to see the detail of this business rate cut for Northern Ireland in the Barnett Formula.”

Meanwhile, tobacco giant JTI have hit out at a tax increase for tobacco products

Daniel Sciamma, managing director of JTI in the UK, said: “With the UK Government’s own figures showing that tobacco smuggling cost £2.1 billion in tax revenue last year, this raising of cigarette duties by two per cent above inflation and hand rolling tobacco by five per cent above inflation is another incentive for smugglers as it will further widen the price between legitimate and illegal products.”

Referring to data from analysts Nielsen in December 2015, Mr Sciamma added: “Giving an even higher increase to roll-you-own is especially reckless considering that over a third of hand rolling tobacco smoked in the UK is already illegal.”