Representing cookshops and housewares stockists among its members, The British Independent Retailers Association (Bira) has said it is underwhelmed with the offerings for independent businesses following this week’s Spring Statement.
On Wednesday (March 23), chancellor Riski Sunak announced that the basic rate of income tax will be cut from 20p in the pound to 19p, and fuel duty will also be cut by 5p.
In response to this news, Bira’s ceo Andrew Goodacre said: “The Spring Statement is underwhelming for indie retailers with limited help on rising costs to business. Whilst we support cuts in fuel duty and an increase in NI allowance, this not nowhere near enough to offset 300% increases in energy, 100% increase in rates and double digit increases in the cost of employment. The 1p cut in income tax is a classic diversionary tactic designed to hide a statement which is short on support for business.”
He added: “Increases in product costs are easier to pass on to consumer, but these rising overhead costs are not which ultimately means a very difficult year for small retailers.”
However, the FSB (Federation of Small Businesses) welcomes the news that the Employment Allowance will rise from rom £4,000 to £5,000, following the FSB’s lobbying. Martin McTague, FSB national chair commented: “We originally put forward the Employment Allowance as a targeted measure to help small firms, and it has now been expanded three times since its creation. Together with a cut to fuel duty, these measures will provide crucial breathing space for our embattled small employers.”
Martin added: “This Spring Statement marks a good starting point, with welcome measures on business rates, net zero and energy investment taking effect next month.”
Top: Chancellor Rishi Sunak made his Spring Statement on Wednesday.
