The media has dubbed this month "Awful April" as consumer price increases taking effect, and with this new tax year, retailers are facing a perfect storm of cost increases that threaten to squeeze already tight margins. Business rates are rising by a staggering 140 per cent, the National Living Wage is increasing by 6.7 per cent, and National Insurance Contributions are also up.
Since these challenges were announced, Bira has been engaging with the government, urging them to reconsider policies and provide more support. While our efforts have not yet yielded change, we remain undeterred. Most recently, we submitted a comprehensive response to the business rates reform, again emphasising how the proposals fall short of addressing the needs of indies.
While we continue to campaign for policy changes at the governmental level, there are immediate steps you can take to potentially reduce some of the costs coming your way.
I strongly urge all members to verify that your rates bill is correct. You can do this easily by visiting the government website. The process requires only your postcode and is certainly worth it as mistakes do occur. If you find inaccuracies, contact your local authority and valuation office.
Some of you may see your NI contributions decrease in the new tax year. This is due to the employers' allowance for NICs being increased from £5,000 to £10,500. We believe that this increase means that if you employ fewer than 7 people, you should pay less. It's certainly worth consulting whoever manages your payroll to ensure the full allowance is being claimed.
Andrew Goodacre
With costs rising faster than sales, the economic landscape was challenging even before these latest increases; the lack of support in the Spring Statement has only compounded these issues.
At Bira, we are working to ensure that "your voice" is heard by government. As the representative body for independent retailers, we continue to campaign on critical issues including retail crime, business rates, and legislation.
Bira members can access our free advice line service, Bira Legal, in partnership with WorkNest. This can provide valuable guidance on navigating these challenging economic conditions.
Through Retra and the wider Bira network, we will continue to champion the cause of independent shopkeepers, focusing on revitalising and preserving the high street.
Together, we form a powerful collective voice for independent retail in the UK. While the Spring Statement may not have delivered the support we had hoped for, we remain committed to fighting for policies that recognise the vital contribution of independent retailers to our economy and communities.
