‘Independent retailers need protected in upcoming Budget’
Warnings of shop closures and job losses have come in the weeks leading up to the 2025 Autumn Budget, as the Fed calls on the Chancellor to back small businesses.
The Fed’s National President Hetal Patel has written to Rachel Reeves to reiterate the pressures faced by independent retailers in the current economic climate.
Mr Patel said that while the Fed “fully supports” the Chancellor’s growth agenda and believes retail should be at the heart of it, he said the government must recognize the financial strain on independent retailers.
“Our members continue to have great concerns about the current economic outlook in general and some of the extra costs that businesses have been forced to pay since the financial year began in April,” said Mr Patel.
“While we recognise the fiscal challenges the government faces, we hope that the financial pressures faced by independent retailers can be controlled as much as possible in the Budget.
“As previously shared, a survey of the Fed’s membership close to the start of the financial year showed that 52% of our members said they would be cutting back their workforce and 41% said they would opt to simply increase costs in response to the changes made.”
On the subject of business rates, Mr Patel called for the government to continue to ensure small retail businesses are protected with relief, particularly with the rates revaluation which is due this year.
“We hope that permanent retail, hospitality and leisure multipliers are as low as possible and that Small Business Rates Relief thresholds will rise in line with costs,” he added.
The surge in retail crime continues to be a major concern for retailers. The Fed has previously welcomed the £5 million pledged over three years to continue funding the national policing intelligence unit. However, insists more needs to be done in this area.
“We are particularly concerned that there is a lack of resourcing for trading standard officials employed by local councils,” said Mr Patel.
“They play a vital role ensuring the health of the high street by tackling the illicit trade of tobacco and other goods, and face new pressures linked to tobacco licensing, as well as the single use vape and generational smoking bans.”
The increase in National Insurance contributions hit many independent retailers, as did the above inflation increase in the National Living Wage.
“While our members are responsible employers and we support the existence of the National Living Wage to reward work, we feel it should be set at an affordable rate so our members can continue to provide the employment necessary for our businesses to thrive and to support the Government’s wider growth agenda,” said Mr Patel.
“We also feel that the National Living Wage should be set at a lower rate for those younger workers aged 18 to 20 to reflect the extra training costs of supporting younger staff members new to the workforce.
“We hope that taxes facing small businesses will be kept as low as possible in the new financial year.”
