The Federation of Independent Retailers (the Fed) has welcomed a campaign win after Wednesday's budget announcement that the government would increase eligibility for Small Business Rates Relief (SBRR), but has said the cost of business for small shops remains too high.
Budget Announcement Details
The announcement also stated that SBRR would be lost for those who sell vapes, though the Fed has received assurances that these will not apply to those selling vapes as part of a much wider range of products. The Fed plans to continue to engage closely with HMT and other government departments on how this and other changes relating to business rates will be rolled out.
The announcement was accompanied by confirmation of a further increase in the National Living Wage, which the Fed commented on earlier on Wednesday, and comes at a time when a range of commercial costs like energy bills remain high.
Energy and Tax Pressures
Despite support for consumers and industrial companies with their energy bills, there was little extra support for small retailers struggling with higher energy costs. The government has also maintained National Insurance Contributions for a higher rate and on earnings over £5,000 per annum, following a controversial tax change made in the budget two years ago.
Fed's Response
Commenting, the Fed's national president Hemanshu Patel said: "We are looking closely at changes that look likely to be made to Small Business Rates Relief that could benefit some of our members.
"However, the message from the Fed remains that the cost of business remains too high. Our shops are crucial employers and also a familiar face in the communities they serve. It is important that the government continues to engage with the Fed to ensure that small retail businesses can survive."
The Fed also welcomed measures announced in the budget to maintain the fuel duty cut of 5p per litre until July and a temporary reduction in import duties for a bundle of approximately 100 items often sold in independent convenience stores, including baked beans and chocolate.
