Following the news earlier this week that new Prime Minister Andy Burnham is to cancel out the VAT on electricity bills for households, the Federation of Independent Retailers (the Fed) and the British Independent Retailers Assoicaiton (Bira) have commented, saying they hope the move signals a wider range of cuts that can also be applied to businesses in the UK.
The Fed’s national president, Hemanshu Patel (left), said: “Whilst we understand the squeeze on households caused by high energy prices, we also hope the new Government will consider what they can do to limit the pressure high energy costs have on small businesses, like independent retailers and more.
“By some measures, electricity costs are 45% higher in the UK compared with the G7 average, and unlike domestic rates, business bills are not regulated and are not subject to the Ofgem price cap.”
Patel added that he hoped other areas of expense for high street stores might also soon come under scrutiny: “As well as raw energy costs, business energy bills include significant non-commodity costs like network charges, environmental levies and taxes.
”The Fed also worked with Sarah Edwards MP on her Trust & Transparency Charter to try and boost competitiveness in the energy market to try and drive down bills.
“Our members’ businesses use significant amounts of energy - particularly on things like refrigeration, which cannot be turned off for perishable goods sold in the shops run by our members. They’re also important economic drivers by providing huge amounts of employment and tax revenue – as well as a familiar community face.
“We’re therefore calling for Government to engage with retailers and other business representatives to do what they can to control costs for businesses as well as domestic properties.”
Also commenting, Andrew Goodacre (right), CEO of Bira, said: ”We’re waiting to hear about Burnham’s known commitments to reducing business rates for high street businesses.
“Ideally we’d like to see the 75% discount brought back, funded by using the Support Small Business Relief (valued at £4.3bn), the handling fee on low value imports which could be worth £3.5bn per annum and bringing forward the focus on VAT fraud from online sellers (worth £900m).
“With regards to electricity, we’d love to see more flexible contracts, giving smaller businesses a choice resulting in lower bills. We believe that if the Government reduces business costs, prices will come down and the general public will see a benefit.”
No comments yet