Independent retailers are facing the same crippling pressures as pubs but remain excluded from discussions about additional business rates support, the British Independent Retailers Association (Bira) has warned in light of new employment figures.
Data from the Office for National Statistics released today (20 January) shows payroll numbers fell by 135,000 in the year to November, with the decline concentrated in retail and hospitality. A provisional estimate showed a further 43,000 drop in December alone.
Andrew Goodacre (left), CEO of Bira, said the figures provided fresh evidence that independent shops deserve equal treatment to pubs when it comes to business rates relief. “These figures show retail is under exactly the same strain as hospitality.
“Shops are shedding jobs heading into what should be the busiest trading period of the year. That tells you everything about the state of independent retail right now.”
The government is expected to announce reduced business rate rises for pubs in England after pressure from landlords and industry groups. More than 1,000 pubs recently banned Labour MPs from their premises in protest.
Goodacre said independent retailers face identical challenges to pubs - significant increases in rateable values, falling sales due to weak consumer confidence and rising labour costs from higher NI contributions and minimum wage increases.
“Our business model is under real stress, and we also have to compete against online retail giants and low-value imports escaping duty,” added Goodacre. “We’re cutting staff when we should be hiring for Christmas. That’s not sustainable.”
The CEO pointed out that independent retailers have always been recognised alongside pubs in previous relief schemes, such as the Retail Hospitality and Leisure relief during the pandemic.
“It would be an absolute scandal if community shops and hard-working shop owners are left to manage their own demise by this government.”
“If there’s a new deal for pubs, we want to see the same for independent retail. It would be an absolute scandal if community shops and hard-working shop owners are left to manage their own demise by this government.”
The new ONS figures show wage growth in the UK had also eased to 4.5% between September and November, with private sector pay growth slowing to its lowest rate in five years.
In November’s Budget, Chancellor Rachel Reeves scaled back business rate discounts from 75% to 40%, with no discount at all from April. Combined with upward adjustments to rateable values, this has left many independent retailers facing substantially higher bills.
Goodacre warned excluding small shops from any new relief package would send a clear message the government doesn’t care about independent retail or high streets. “Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too. We need action, not warm words.”
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