Budget designed to initiate restore consumers confidence having ‘opposite effect’: BIRA

More than half of independent shops in a recent survey by British Independent Retailers Association (BIRA) believed that the most valuable support would come from the cut of energy bills.

Members of BIRA have reacted to news of the mini budget and energy announcements by outlining which would be helping them the most in coming months.

Last week, the government promised they had plans in the pipeline for helping cut energy bills by working with suppliers to reduce wholesale energy costs and rises in bills.

It was also outlined in the mini budget announcement by Chancellor Kwasi Kwarteng that the basic rate of income tax would be cut by 19p in April 2023, and the recent rise in National Insurance would also be reversed from 6 November this year.

Among those independent shops questioned in the survey undertaken this week, over half (51 per cent) believed that the most valuable support would come from the cut of energy bills, while no increase in corporation tax was welcomed by 22.4 per cent of those questioned.

Only 4 per cent said they were happy with the proposed reduction of income tax, and 12 percent said the reversal of National Insurance would provide support.

In a similar survey conducted at the end of August before both the Ofgem announcement on energy prices and the mini budget announcement last week, BIRA members revealed they had been preparing for the worst.

BIRA’s CEO Andrew Goodacre said, “Some of the recent measures announced would help independents. However, there are now other factors now in play with higher import prices (due to the declining value of the pound) resulting in higher prices.

“There is also the spectre of much higher interest rates dampening consumer expenditure. A budget deigned to initiate growth and restore consumer/ business confidence seems to have had the opposite effect. We do need consumers to continue spending money with independents but with everyones budgets getting tighter by the week it remains to be seen what the future holds for the high street,” he added

There is also a financial statement from the Chancellor on November 23 to outline medium to long-term plans.

“Independent retailers are still burdened by business rates. Clearly we have a government that wants to do things differently and I urge the Chancellor to completely reform businesses rates and reduce the burden in November,” Goodacre said.