08 May 2025
Bira has welcomed the Bank of England's decision to reduce interest rates from 4.5% to 4.25%, calling it a "much-needed boost" for the retail sector during challenging economic times.
Bira believes the reduction will help alleviate some of the financial pressure on retailers who have been grappling with significant cost increases since April.
Andrew Goodacre, CEO of Bira, said: "This latest interest rate cut is the third reduction we've seen in recent months, following cuts in late 2024 and February 2025. For our members, this translates to lower borrowing costs and potentially improved consumer confidence – both essential ingredients for retail recovery.
"Independent retailers know that confident consumers spend more money. With sales needing to increase to keep pace with the significant cost increases faced by the retail sector since April, this decision couldn't have come at a better time.
"This interest rate cut represents a positive step, but we continue to advocate for comprehensive reform of business rates and additional measures to combat retail crime – issues that remain significant concerns for our members."
The announcement comes at a critical time for independent retailers who have faced considerable challenges, including rising operational costs, energy price increases, and the continued impact of inflation on consumer spending.
Bira also highlighted that the interest rate cut, combined with two major trade deals secured by the government, should create a more favourable economic environment for small businesses. The association has consistently campaigned for measures to support high street retailers, who play a vital role in local economies throughout Britain.
Whilst welcoming the rate reduction, Bira emphasised that more work remains to be done to fully revitalise Britain's high streets and ensure the long-term sustainability of independent retail.
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
Catch up on key industry insights with podcast episodes available now
High Street Matters will discuss crucial subjects such as consumer trends, relevant government legislation, business rates, parking and staffing, providing top tips to help to help businesses stay ahead of the retail curve.
We’re talking to a cross section of our members from across the UK, from single retail outlets to small chains, and from large department stores to leisure and hospitality.
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