Independent retailers face "perfect storm" of cost pressures as Budget podcast reveals harsh reality

Independent retailers are facing business rates increases of up to 45% alongside rising wage costs and a four-year wait for action on unfair competition, a new podcast from Bira has revealed.

The latest episode of 'High Street Matters', titled 'The Autumn Budget - A Reaction from Independent Retailers', examines the gap between government promises of "transformation" and the harsh reality facing shops on the high street.

Hosted by Andrew Goodacre, CEO of Bira, the episode features John Jones, Managing Partner of Philip Morris & Son in Hereford and current President of Bira, who shares his frank assessment of what the Budget means for his 170-year-old family department store.

Mr Jones said: "Initially it sounded all right. I thought there were a few things that supported retail. Unfortunately, the devil is in the detail. What the Chancellor announced and what it turned out to be were two very different things. I thought rates were going to be all right - it's turned out we've got a 45% increase by the time transition relief runs out."

The podcast reveals how the government's promised "transformation" of business rates has failed to materialise, with most independent retailers facing significant increases despite new lower multipliers. Mr Jones explained that despite one of his rents going down, his rateable value shot up, leaving it over 50% above his actual rent.

"It feels like we've been misled," said Mr Jones. "It's being spun as support for small retail, but it's the opposite. Big retailers may pay less, while independents pay more. It makes no sense."

Mr Goodacre added: "Major supermarkets are seeing around a 1.6% increase - meaning they will actually pay £100,000 less next year. Yet independent shops are facing increases of 45%. How is that levelling the playing field?"

The episode also tackles the four-year delay in closing the low-value import duty loophole, which allows overseas sellers to flood the UK market with goods that avoid VAT, duty, and safety standards.

Mr Jones said: "Items come in very cheaply from abroad. They bypass product safety laws, employment law, health and safety - everything we must comply with. America closed their loophole in less than six months. Europe's doing it next year. Why are we waiting until 2029?"

Mr Goodacre expressed concern that the delay may be linked to trade negotiations: "It feels like the China deal is more important than the UK high street."

The podcast also examines the impact of National Living Wage increases, with the rate for 21+ rising by 4.1% and the 18-20 rate jumping 8.5%.

Mr Jones warned this could affect youth employment: "If I have to pay an 18-year-old almost the same as someone with ten years' experience, I'm more likely to employ the experienced person. I think this will increase youth unemployment."

When asked if there was anything positive in the Budget for independent retailers, Mr Jones was blunt: "Honestly? No. There is nothing for growth - nothing that drives growth. And without growth, there's no investment, no confidence, and no reason to take risks."

Mr Goodacre added: "The Office for Budget Responsibility says the same: no growth measures. Growth is what gives consumers money to spend on the high street. Without it, discretionary spending falls. Independent retailers will find ways to adapt, but this Budget has made their job significantly harder."

The podcast is available now by searching for 'High Street Matters' online. More resources and support for independent retailers can be found at bira.co.uk.

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