03 April 2023
Bira calls for support from the Business Minister for Department for Business and Trade
On 9th March we reported that Bira, along with the rest of the members of the Independent Retailers Confederation (IRC) had recently met with Kevin Hollinrake, the Business Minister for the Department For Business and Trade. In that meeting, we discussed a range of topics, with a focus on business rates, energy costs, apprenticeships, and the impact of banks closing branches.
We have since followed up the meeting with a written response to the Minister, a summary of which is below.
Energy Support – The Minister expressed a willingness to have conversations to try and alleviate some of those particular instances where people are mid-contract and on high rates. We acknowledged there would be pushback in energy providers’ claims that energy prices were hedged and that suppliers will be paying high rates on contracts themselves, but that we are keen to continue to explore what can be done.
Business Rates – The Minister agreed that despite the 75% retail discount coming this month (April 2023), there is still inequality in the current system and that further reform is urgently required. We offered to collaborate in any way we can to find solutions, not least to help identify where else retail’s £7bn contribution to the £32bn business rates income could come from.
Employment - We welcomed the Spring Budget announcement relating to childcare provision, but that the potential effect of this change would not be expected to come along until 2025, and that the sector needed help now. In addition to sharing several considerations relating to the apprenticeship scheme, we informed the Minister that we felt the decision to increase NMW by 9% looks wrong given that the average inflation rate in 2023 is predicted to be 5.9%.
Postal and Financial Service – We raised our concern over the ongoing strikes, a proposed move to 5 days delivery and the cost-increase of postage stamps. The Minister confirmed his support for the USO (Universal Service Obligation) that Royal Mail operates under. We asked that if Royal Mail reports the USO as economically unviable, the Government would do anything in its power to help maintain USO and to consider the benefits to the country of a more robust stance in relation to Royal Mail and
the postal price increases.
We also informed the Minister that the closure of major high street Banks’ branches means the requirement for post offices to act as hubs are all the more vital, but that the added pressure on post offices isn’t being addressed, and therefore compounds the issue for local businesses.
In all, the meeting was encouraging and we were pleased for the opportunity to share the voice of independent high street businesses with Minister Hollinrake, who has committed to the ongoing dialogue.