Skip to content
Search
AI Powered
Latest Stories
Submit Guest Post

Independent retailers urged to push for fair rates reform

Independent retailers

Independent retailers are being urged to support calls for fairer business rates reform as the sector faces ongoing cost pressures.

Image: iStock

The British Independent Retailers Association (Bira) has said it will urge the Prime Minister to deliver full business rates reform for the whole high street, not just a 20 per cent discount for pubs, clubs and live music venues.

In its latest podcast series, High Street Matters, Bira sets out a funded proposal that could raise £6.5 billion for the Treasury by closing the low value import loophole and tackling online VAT fraud, enough to pay for wider business rates support.

The episode, called "Message to the New PM", features Andrew Goodacre, CEO of Bira, Surinder Josan, past president of Bira and owner of All Seasons DIY in Smethwick, and John Jones, current president of Bira and managing partner of Philip Morris and Son in Hereford.

"Government support for reducing business rates has fallen from £2.5 billion in 2024 to £900 million today, and that's being felt across the whole sector," said Goodacre. "We need a cohesive plan for high streets, not just picking off one or two sectors that could be a popular vote."

Mr Josan added that rising costs are forcing some retailers out of business altogether, changing the mix of shops on the high street, while rising shop theft and antisocial behaviour add further pressure.

He said: "Our own cost of running a business has gone up drastically. And the compounding effect of that inevitably is that we're going to lose retailers."

Mr Jones said the business rates system needs a complete overhaul so that online and digital businesses take a fair share of the burden, rather than physical shops carrying the load alone.

He said: "I firmly believe that the high street can look after itself if the tax regime allows it to."

Mr Goodacre said closing the low value import loophole and addressing online VAT fraud could raise around £6.5 billion for the Treasury, more than enough to cover a 75% discount on business rates for retail, leisure and hospitality businesses.

He said: "The money should come back into high streets."

Looking ahead to the autumn Budget, Mr Goodacre said Bira remains hopeful that government will listen, after senior Treasury officials contacted the organisation the day after the pubs announcement to discuss its concerns.

Asked what success would look like in a year's time, Mr Josan called for reduced crime, reduced energy bills, reduced business rates and a greater variety of shops on the high street. Mr Jones said he hoped to see turnover and employment at Philip Morris and Son moving in the right direction.

The podcast can be found by searching "High Street Matters Bira" on your podcast provider of choice.