Independent UK retailers to see rates bills soar by up to 15%: BIRA

BIRA said the reality of the latest budget has fallen far short of the ‘transformation’ pledged by ministers, with most independent shops set to pay considerably more in rates despite new lower multipliers.

BIRA chief executive officer (CEO) Andrew Goodacre said in a statement that the government had used the rates revaluation to mask what amounts to "tinkering around the edges" rather than genuine reform.

"We were promised transformation, but what we've got is a system that will see most independent retailers paying 15 per cent more in business rates next year—way above inflation," said Goodacre.

"Even with transitional relief and small business support, shop owners are facing substantial increases at a time when they're already squeezed by rising wage costs and unfair competition from overseas sellers," he noted.

"The fact that these complex transitional reliefs are even needed shows that business rates still requires wholesale reform," added Goodacre.

BIRA has contacted the Treasury with real examples demonstrating how the new system penalises independent shops while many very large stores will pay less than before.

"There are serious questions for the Valuation Office about how shops on the high street see their valuations soar while superstores on retail parks get lower valuations," said Mr Goodacre. "It doesn't make sense and frankly feels like a betrayal of the government's stated aim to support the high street."

The rates increases come alongside rising labour costs, with the National Living Wage increasing to £12.71 from April, and a four-year wait until the low-value import duty loophole closes in 2029, the BIRA release added.

BIRA has urged the government to explain how the new system supports independent retailers when most will see significant bill increases, and to bring forward the closure of the import duty loophole.

ALCHEMPro News Desk (DS)