National Insurance - Neighbourhood Retailer

Retailers welcome Kwarteng budget but warn business rates holiday is vital

Linda Stewart — Fri, 23 Sep 2022 11:22:36 +0000

Retailers in Northern Ireland have welcomed the reversal of the National Insurance increase announced in Chancellor Kwasi Kwarteng’s Mini Budget but warned that a business rates holiday is urgently needed to save high street businesses.

The Chancellor announced that the recent rise in National Insurance tax would be reversed from 6 November and the planned rise in corporation tax from 19% to 25% has been cancelled.

VAT-free shopping for overseas visitors will be brought in and planned increases on alcohol have been cancelled.

New low tax investment zones will be set up in England where tax cuts and liberalised planning rules to be offered to release land for housing and commercial use.

Reacting to the Chancellors statement, Retail NI Chief Executive Glyn Roberts said: “We welcome that the Government is to reverse the National Insurance increase which will provide some relief to local independent retailers who are struggling with the cost of business crisis.

“Retail NI will engage with the Secretary of State for NI on how the Investment Zone proposals could apply to Northern Ireland, particularly in town and city centres that have high levels of dereliction and are in need of further support.

”We are disappointed that no funding assistance from Treasury has been allocated to allow a business rates holiday to be introduced locally. If we are to stand any chance of saving local high street businesses and protecting jobs, it is vital that a rates holiday is urgently introduced.

“Lowering VAT rates should also have been included in this statement, rather than focusing on stamp duty and corporation tax.

“The UK Government needs to go a lot further in supporting our local high streets and we will continue to press for further measures.”

Ann McGregor, Chief Executive, Northern Ireland Chamber of Commerce and Industry said businesses would welcome the Chancellor’s pledge to focus on economic growth.

“Inevitably, the devil will be in the detail of these proposals, but they must strike the right balance between tackling immediate pressures, driving reform and providing for a sustainable future,” she said.

“Moves to target certain business costs, including reversing plans to increase corporation tax and national insurance are welcome interventions at a time of critical need. Reversing the planned increase in corporation tax will be crucial for local firms competing on the island of Ireland in particular.

“But today’s announcement just underlines the need for a restored Executive to respond in parallel to protect businesses and unlock sustainable growth locally.

“We need an Executive that can take urgent action on priority issues like reforming business rates, tackling the productivity gap and transforming the planning system to enable green growth. That, combined with resolution on the NI Protocol will help restore much needed business confidence.”

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Truss must ‘hit the ground running’: Retail NI

Linda Stewart — Mon, 05 Sep 2022 12:58:06 +0000

Retailers in Northern Ireland say Liz Truss must hit the ground running as she takes up the mantle of UK Prime Minister.

After winning the Tory leadership contest, defeating former chancellor Rishi Sunak by 81,326 votes to 60,399, Liz Truss will replace Boris Johnson as prime minister.

Ms Truss said that as premier she will lead the Conservative Party to a “great victory” at the 2024 general election as she stressed her priority in the coming years will be delivering on policy pledges.

Delivering her victory speech at the Queen Elizabeth II Centre in central London, Ms Truss said: “I know that we will deliver, we will deliver, we will deliver. And we will deliver a great victory for the Conservative Party in 2024.”

Reacting to the election of Liz Truss as Leader of the Conservative Party, Retail NI Chief Executive Glyn Roberts said: “Liz Truss has a huge in tray of challenges, not least bringing forward a package of support for small businesses and independent retailers that are struggling with crippling increases in their energy bills.

“She must hit the ground running with a big bold plan for our economy and follow through on her promise to reverse the National Insurance hike.

“The cost of doing business crisis is threatening jobs and businesses across every sector of our economy. Businesses are facing a perfect storm of cost increases including energy, National Insurance, inflation, Covid recovery, and rising interest rates.

“Make no mistake, this is about saving jobs and businesses over the next months.”

Congratulating the new Prime Minister, Tony Danker, CBI Director-General, said: “This is an extraordinarily difficult time to be leading the country, and she has businesses’ full support in meeting shared challenges together, head on.

“Most immediately, support for struggling households and firms in jeopardy is top of the in-tray. This may not be the pandemic, but the exceptional circumstances we now face mean Government must play a central role in supporting our economy.

“And if we’re serious about getting the UK growing again, ensuring any slowdown is short and shallow, we need a serious plan for growth. It needs to be bold, unconventional and rooted in the very real opportunities that still exist for the UK to thrive.”

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Leading NI trade groups unite to outline action plan on cost of doing business crisis

Linda Stewart — Mon, 22 Aug 2022 12:21:32 +0000

Northern Ireland’s leading trade organisations have published an action plan aimed at tackling the looming cost of doing business crisis that is affecting thousands in the region.

As a knock-on effect from the cost-of-living emergency, businesses are seeing a fall in trade and customer levels. Coupled with raising inflation, a workforce crisis across the sectors, and remaining Covid pressures, many within hospitality and retail are struggling to remain viable with businesses shutting up shop every day.

Actions within the plan include:

VAT to be reduced to 17%.
Reinstate the reduced Tourism / Hospitality VAT rate to support businesses that rely on household discretionary disposable income and tourism spend.
Restoration of the Business Rates Holiday which concluded in July 2022, running until April 2023.
A UK wide reform of the business rates system to ensure online and out of town businesses are paying the same rate as high street businesses.
Support from the UK Government for the devolved nations to reduce business rates by providing increased financial support through the block grants.
The removal of VAT from energy bills to reduce energy costs.
The Northern Ireland Executive to establish a Rural Town and Village Infrastructure Investment Fund to ensure our small and mid-sized towns and villages are supported during this economic crisis.

The action plan has been co-designed by Retail NI, Hospitality Ulster, Londonderry Chamber of Commerce, Bangor Chamber of Commerce, Ballycastle Chamber of Commerce, Ballymena Chamber of Commerce, Banbridge Chamber of Commerce, Belfast Chamber of Commerce, Causeway Chamber of Commerce, Lisburn Chamber of Commerce, NI Takeaway Association, Newry Chamber of Commerce, Newtownards Chamber of Trade, Omagh Chamber of Commerce, and Portadown Chamber of Commerce.

In a joint statement, the leaders of the 15 business organisations said: “We are at a critical juncture as a perfect storm of factors is causing devastation for the retail and hospitality sectors and could see thousands of businesses threatened over the next months if no action is taken.

“Out of control energy bill increases, labour shortages, inflation, National Insurance increases, and sky-high business rates – the highest in the UK – are risking the business climate of Northern Ireland. Fears that many will simply go under in the next months without government assistance are keenly felt and we cannot continue on this path of destruction any longer.

“We are pushing customers away due to having to raise prices to keep pace with these rising costs, which is therefore having a detrimental impact on trade and consumer confidence.

“Intervention is required by the UK Government, as well as the limited powers of NI Executive Ministers, to stave off the worst of this crisis on business owners and provide tangible support and resources that could keep trade viable.

“Our plan has achievable, tangible solutions that would support business from day one. Actions including a reduction in the VAT rate to 17% to encourage more households to spend on the high street; increased financial assistance through the block grant to alleviate the cost of business rates; and the implementation of the NI High Street Taskforce Report will help bolster business back to viable trading levels.

“We call on both Governments to consider our proposals and engage with the business community on how best to implement urgent actions that can alleviate these crippling pressures. It will support both businesses and consumers in this most pressing of times.”

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Retailers brand Rishi Sunak’s spring statement a ‘missed opportunity’

Linda Stewart — Wed, 23 Mar 2022 16:30:31 +0000

Retailers in Northern Ireland have branded Chancellor Rishi Sunak’s Spring Statement announcements a missed opportunity.

The Chancellor said 70% of workers will get an effective tax cut as he raises the threshold for paying National Insurance (NI) by £3,000. He also announced a 5p cut to fuel duty to come into force at 6pm tonight and said the basic rate of income tax will go from 20% to 19% by the end of Parliament in 2024.

However, the Office for Budget Responsibility said that the Spring Statement only unwound a sixth of the tax rises imposed since February 2020.

UK households are set to see the biggest drop in their spending power in 2022-23 since records began in 1956, due rising prices combined with the impact of tax increases, according to the OBR.

The UK economy is forecast to grow by 3.8% this year, according to the OBR – a sharp drop from its previous prediction of 6.0%. The economy is then forecast to grow by 1.8% in 2023 and 2.1% in 2024.

The OBR predicted UK inflation is now set to average 7.4% this year – the highest since August 1991 – as the Ukraine crisis will further disrupt supply chains and send energy bills soaring. It had previously forecast Consumer Prices Index inflation to average 4% in 2022.

Real household disposable incomes per person – the money people have to spend after covering essentials, and taking into account inflation – are forecast to fall by 2.2 per cent in 2022-23, the biggest fall in a financial year since the Office for National Statistics began keeping records.

Reacting to the Chancellor’s Spring Statement, Retail NI Chief Executive Glyn Roberts said: “While it is welcome that the Chancellor is to cut Fuel Duty by 5p per litre and increase Employment Allowance NIC payments, this statement does not begin to tackle the perfect storm of cost increases facing our members.

“It is not just a cost-of-living crisis we face; it is a cost of doing business crisis as well. Increasing National Insurance for business is the wrong tax at the wrong time and will limit economic growth at a time when we need it more than ever. This is a missed opportunity.”

Ann McGregor, Chief Executive, Northern Ireland Chamber of Commerce and Industry (NI Chamber) said: “The Spring Statement falls short of the action businesses needed to see today. While there are some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures they are facing.

“For example, while cuts to fuel duty are welcome, in reality, the reduction is small when compared to the larger tsunami of surging costs that is bearing down on firms and households.

“The Statement lacked the kind of decisive action which businesses, who are already struggling with a rapidly escalating ‘cost of doing business’ crisis, needed to see. Smaller firms are particularly exposed as they have neither the protections, or financial support provided to households, nor the negotiating power of larger businesses.

“As the economic outlook is likely to get worse before it gets better, many firms will be forced to continue raising prices, further fuelling the cost-of-living crisis. Businesses are braced to face some gruelling weeks and months ahead. More is needed to support them and protect jobs through the domestic and global economic shocks to come.”

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Retail NI slams proposed National Insurance hike

Julie Nash — Wed, 08 Sep 2021 13:07:40 +0000

As MP’s vote on the proposed National Insurance Hike, Retail NI has said it will have a disproportionate impact on Northern Ireland given the predominance of small businesses in the local economy.

Retail NI Chief Executive, Glyn Roberts said:

“This is the wrong tax hike at the wrong time. It will do nothing to help economic recovery and is ultimately a tax on jobs”

“With thousands of local independent retailers and small traders still struggling to recover from successive lockdowns, an excessive tax rise from the UK Government is another nail in the coffin”.

“There is a perfect storm of problems facing our members Energy Bills are increasing, Furlough is ending, and they still have to deal with Covid-19 restrictions”

“The UK Government needs to immediately increase the Employment Allowance for small traders to reduce the impact of this regressive move”

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