The imminent Budget announcement and cracking down on illegal shops are among the areas of focus for Bira this month.
Read the latest update from Andrew Goodacre, CEO
Hello,
There are a number of areas of focus for Bira this month.
- We are just a week away from the Budget on November 26th. This is probably the most talked about budget that I can remember, and for all the wrong reasons. The timing of it as well could not be worse for the retail sector – just 4 weeks away from Xmas. If it was delayed (last year was October) to see if good economic news might arrive, that was a false hope given the GDP figures.
Although the budget is not far away, it is still not too late to influence the Treasury. I get a sense that final decisions will not be made until quite late on, because of the magnitude of some of the proposals that have been leaked. BIRA has been consistent with what it would like to see for our members:
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- Make meaningful changes to business rates to reduce the burden. This government is committed to introducing lower multipliers for smaller retailers – up to 20p lower. We want this 20p reduction for all for all retailers with a rateable value below £100K.
- If that does not happen, for businesses above £51K rateable value, we want to see ‘transitional relief’ made available. Based on what we currently know, these businesses may see a 40% increase in business rates next year. Transitional relief can be used to smooth such large increase over a period of time.
- Make meaningful changes to business rates to reduce the burden. This government is committed to introducing lower multipliers for smaller retailers – up to 20p lower. We want this 20p reduction for all for all retailers with a rateable value below £100K.
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- Remove the loophole for low value items. Currently anything below £135 in value enters the country free of duty and often free of VAT. This allows millions of products, via the on-line marketplaces, to come into the UK and undermine hard working businesses on high streets. On top of that, many of them are unsafe or fake. Bira has been pushing for this loophole to be closed, and a small tariff added. A £20 tariff/ duty could raise as much as £20 billion in a short space of time, and let’s not forget that this government is short of money!
- A National Living Wage that is closer to inflation, and nothing above 4.2%. In the past 3 years the NLW has risen by 27%. This year must be lower.
- More funding to fight retail crime and illegal shops. These are so detrimental to successful high streets.
- Remove the loophole for low value items. Currently anything below £135 in value enters the country free of duty and often free of VAT. This allows millions of products, via the on-line marketplaces, to come into the UK and undermine hard working businesses on high streets. On top of that, many of them are unsafe or fake. Bira has been pushing for this loophole to be closed, and a small tariff added. A £20 tariff/ duty could raise as much as £20 billion in a short space of time, and let’s not forget that this government is short of money!
Given the way communications work with this Government, the next week or so is going to be very interesting. Please let me know your thoughts both before and after the budget.
- Crackdown on illegal Shops: Last week we heard about a major police operation focused on illegal shops. I am sure we have all wondered why we have so many barbers, nail bars, candy shops, convenience stores, etc. that do not seem to be busy and yet seem to be surviving on the high street.
Our worst fears have been confirmed by the latest police activity with so many shops operating illegally and selling cigarettes, vapes, drugs, stolen goods, etc. Bira has been calling for action to reduce retail crime and anti-social behaviour. More recently we have been focused on the proliferation of illegal shops and so we are pleased the police are taking action.
These shops are a blight on the high street and undermine the hard working shop owners trading legally. These illegal shops also damage the reputation of the high street – as if life was not hard enough already. We want to see this type of police activity continue. Organised crime needs to know it cannot just do as it pleases. - Away from these issues, we are still focused on retail crime, business rates and closing the duty-free loophole for low value items. Positive policy changes, maybe announced in the Budget, would give our members a chance to enjoy the so-called 'golden quarter'.
Thank you.
Andrew
Bira's advocacy takes your voice to the heart of Parliament
Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.
Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:
- Combatting the rising tide of retail crime
- Advocating for changes in legislation that promote fairness and flexibility
- Fighting for fairer business rates
- Overall reducing the regulatory burden
- £1 billion damages claim against Amazon by UK retailers
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