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Bira meets with Treasury members to discuss Budget concerns and business rate reform proposal

17 Nov 2024

Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.
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ACT teams up with Saledock to supercharge bike shop efficiency and customer experience

14 Nov 2024

The ACT has announced a dynamic partnership with Saledock - an all-in-one POS, eCommerce, and inventory management platform tailor-made for bike shops and workshops.
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'Devastating and out of touch' - independent retailers react to Budget bombshell

1 Nov 2024

Independent retailers across Britain have reacted with dismay to yesterday's Budget, with many warning of store closures, job losses and cancelled expansion plans.
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Devastating Budget Delivers Triple Blow to Independent Retailers, Says ACT and Bira

30 Oct 2024

The British Independent Retailers Association (Bira) and the ACT have condemned today's Budget as the most damaging for independent retailers in recent memory, with... Read more…

Retailers paying one-third of all UK business rates despite making up only 9% of economy

30 Oct 2024

Retailers and hospitality businesses are paying three times their economic share in business rates, according to analysis by the British Retail Consortium (BRC) and UK Hospitality.
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How much cash do you still accept? Independent cycling retailers can respond to this survey today

30 Oct 2024

ACT parent company Bira is working with UK Finance and other organisations who form the UK’s wholesale cash industry to gain vital information to ensure businesses get the best possible... Read more…

Bira Conference a huge success with ACT members in attendance

25 Oct 2024

ACT members were in attendance at the hugely successful Bira Conference in London last week, featuring an inspiring line-up of speakers providing valuable insights from independent retail... Read more…

Bira cautiously welcomes retail sales growth but calls for continued support

11 Oct 2024

ACT parent company Bira has responded to the BRC-KPMG Retail Sales Monitor for September 2024
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FSB launches blueprint to revitalise UK high streets and boost tourism

3 Oct 2024

The Federation of Small Businesses has launched a new initiative, which it says aims to transform high streets across the UK, by advancing economic, social, and cultural benefits, while also... Read more…

Award-winning gin distillery to open new shop in Morecambe

3 Oct 2024

A family-run gin company is set to open a new distillery and shop in Morecambe.
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Devastating Budget Delivers Triple Blow to Independent Retailers, Says ACT and Bira

Posted on in Business News, Cycles News

The British Independent Retailers Association (Bira) and the ACT have condemned today's Budget as the most damaging for independent retailers in recent memory, with a triple blow of doubled business rates, increased National Insurance, and higher minimum wage costs threatening widespread high street closures.

Andrew Goodacre, Bira
Andrew Goodacre, CEO of Bira

The ACT, which is part of Bira Group, reports the reduction in business rates relief from 75% to 40% (capped at £110k) from April 2025 will more than double costs for many retailers.

This comes alongside employer National Insurance contributions rising from 13.8% to 15%, with the earnings threshold slashed from £9,100 to £5,000, and the minimum wage increasing to £12.21 per hour for over-21s.

Andrew Goodacre, CEO of Bira, said: "This is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government's actions today show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.

"Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they're hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught.

"One member has already calculated these changes will increase their cost base by £150,000 next year alone," he said.

Mr Goodacre added: "For all the government's rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their businesses' future.

"What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They're now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.

"This is clearly an anti-high street Budget. I can only assume that the government is happy for working people to shop online and buy cheap imports. This government has shown complete disregard for the local businesses that create jobs and maintain vibrant communities," he said.

A recent survey released by Bira showed that 46% of retailers reported worse trading in early 2024 compared to 2023, with 42.6% expressing low confidence for Q2 2024.

Mr Goodacre said: "This Budget betrays every independent retailer who has fought to keep their business alive through recent challenges. It's not just disappointing - it's potentially catastrophic for Britain's high streets."

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