The British Independent Retail Association (Bira) has warned that many retailers could face an “existential crisis” if the Small Business Rate Relief (SBRR) scheme comes to an end.
In its submission to the Treasury, the trade body has urged the government to freeze the small business multiplier at 49.9p, continue the SBRR scheme and maintain the RHL relief payment at a 75% discount until the wholesale reform of business rates is completed.
The plea comes amidst alarming statistics from PwC, revealing that the UK retail sector faced net closures of 12 outlets per day in the first half of 2024, resulting in 2,284 fewer high street, shopping centre, and out-of-town stores.
“These measures are seen as vital lifelines for independent retailers struggling in a challenging economic climate,” explained Bira.
Chief executive of Bira Andrew Goodacre stressed that business rates reliefs have been a crucial support mechanism for years and that they’ve never been more needed than now.
“We are deeply concerned that the new Labour Government might not extend the RHL relief in its efforts to address the £22 billion deficit in the UK’s finances. However, any increase in rates payable by smaller high street businesses would be catastrophic for our sector, threatening their ability to sustain operations and invest in growth.”
Bira has called on the Chancellor to live up to her conference speech where she stated that ‘high street businesses breath new live into communities’ but ‘high street businesses are punished by an outdated system of business rates’.
“Bira believes the Chancellor can only make this happen by retaining these reliefs that are not just about supporting individual businesses, but also maintaining the vibrancy and diversity of UK high streets, which play a crucial role in local economies and communities,” Goodacre added.
The trade body said it awaits the Autumn Statement, scheduled for October 30, hoping for a “clear signal of support for the independent retail sector from the new government”.
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