The British Independent Retailers Association (Bira) has said it is going to urge new Prime Minister, Andy Burnham, to deliver full business rates reform for the whole high street - not just a 20% discount for pubs, clubs and live music venues.
In the latest epiode of its podcast series, High Street Matters, Bira sets out a funded proposal that could raise £6.5bn for the Treasury by closing the low value import loophole and tackling online VAT fraud - making enough to pay for wider business rates support.
The episode, Message to the New PM, features Andrew Goodacre, CEO, Surinder Josan, former president of Bira and owner of All Seasons DIY in Smethwick and John Jones, the current Bira president and managing partner of Philip Morris & Son in Hereford.
“We need a cohesive plan for high streets, not just picking off one or two sectors that could be a popular vote.”
Goodacre said: “Government support for reducing business rates has fallen from £2.5bn in 2024 to £900m today, and that’s being felt across the whole sector. We need a cohesive plan for high streets, not just picking off one or two sectors that could be a popular vote.
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. The compounding effect of that inevitably is that we’re going to lose retailers.”
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 the high street can look after itself if the tax regime allows it to.”
Goodacre added that closing the low value import loophole and addressing online VAT fraud could raise around £6.5bn for the Treasury, more than enough to cover a 75% discount on business rates for retail, leisure and hospitality businesses.
Autumn budget
Looking ahead to the autumn budget, 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, Josan called for reduced crime, reduced energy bills, reduced business rates and a greater variety of shops on the high street, while Jones said he hoped to see turnover and employment at Philip Morris and Son moving in the right direction.
No comments yet