Independent cookshops and housewares stockists are welcoming the news from this week’s Budget that business rates are to be cut by a third for businesses with a rateable value of £51,000 or below from April 2019. The current threshold is £12,00.
High street regeneration was another Budget promise with the announcement of £675 million to improve transport links, re-develop empty shops as homes and offices as well as restore and re-use old and historic properties.
Chancellor Philip Hammond also announced a new digital services tax (DST) aimed at digital platforms like Amazon and Facebook. From April 2020, large social media platforms, search engines and online marketplaces will pay a 2% tax on the revenues they earn which are linked to UK users.
The British Independent Retailers Association (bira) welcomed the positive step towards business rates change, while highlighting the need for further information on how the reduction is going to be achieved. The association continues to advocate the removal of a business rates threshold and introduction of an allowance – the proposal it put to the House of Commons in September 2018.
Andrew Goodacre, bira’s ceo, commented: “We have worked very hard in the past few months to promote our idea to reduce rates for independent retail businesses. This is a positive move by the Government but more detail is needed, and quickly, if the high streets are to become a vibrant part of our communities.” He continued: “We hope therefore that the Government will continue to work with the sector to ensure that this policy is effectively rolled out and benefits those it is meant to.”
bira also welcomes the Government’s proposal to establish a £675 million fund to help rejuvenate the high street by working towards a mix of retail, leisure, services and residential uses.
Andrew Goodacre added: “bira has always promoted high streets as an integral part of our local communities. Independent retail businesses provide the diversity needed on any high street. We welcome the creation of a fund that will help high streets adjust to the future needs of shoppers.”
However, larger retailers voiced disappointment that the rates reduction would not bring benefits. Speaking on BBC Radio 4 this week, David Atkins of Hammerson, landlord for Birmingham’s Bull Ring and London’s Brent Cross Shopping Centres said he was “deeply disappointed” at the missed opportunity to help bricks and mortar retailers in general. David highlighted that the larger retailers are paying 70% of total rates, and that he was part of a lobbying group to introduce a delivery tax, which would encourage consumers to go back into stores.
*The Budget also included an increase to the National Living Wage from April 2019 rising from £7.83 an hour to £8.21.
Top: Chancellor Philip Hammond.
