Government ‘must put independent retailers at heart of its Budget agenda’
Calls have been made on the government to put independent retailers at the centre of its Budget agenda, ahead of the new Chancellor’s first Budget next month.
In a letter to Chancellor John Healey MP, the Fed’s National President outlined some of the key concerns for independent retailers across the UK.
The Budget is scheduled for Wednesday 28th October. Hemanshu Patel had previously written to Mr Healey MP after he was appointed Chanceller by new Prime Minister Andy Burnham at the end of July.
In that letter a similar call for action on business rates, rising operating costs, including above inflation increases to the minimum wage, and retail crime was made. Mr Healey responded to that first letter, stating there was a “great amount to do during the coming months” and that he “looked forward to working with you to achieve our mutual goals”.
Among key concerns raised in Mr Patel’s latest letter are:
- Rogue trade and retail crime rates remain unacceptably high, despite a recent plateauing, with a call for continued investment in neighbourhood policing and ring-fenced resourcing for trading standards teams.
- A call to increase the employer National Insurance Contribution threshold above £5,000 to at least £7,000, as this will particularly help small shops boost employment for those on the margins of employment, such as part-timers and young staff members.
- The impact of business rate increases and losing out on Small Business Rates Relief (SBRR) following the recent April revaluation, with a call on the government to increase the threshold for SBRR from its current base of 100% relief level of £12,000 per annum, to £18,000 or higher.
- Action on energy bills. The Fed’s budget submission also highlights how it is working with Sarah Edwards MP on the Trust and Transparency Charter campaign to create greater competition in the energy market.
Concluding the letter, Mr Patel wrote: “This remains a challenging time for our members and those across the independent convenience sector as they continue to face high taxation and high energy costs.
“Whilst the Fed acknowledges the fiscal challenges the government must deal with, we hope that the needs of small retail businesses – and the wider social and economic benefits they provide – are also factored into the decisions you will need to make in this Budget and beyond.”
