Independent retailers have urged Chancellor John Healey to put small shops at the heart of his first Budget, with Federation of Independent Retailers (the Fed) president Hemanshu Patel writing ahead of the 28 October statement.
Patel’s letter forms part of the Fed’s Budget submission. A similar call on business rates, rising operating costs and retail crime was made in an earlier letter when Healey was appointed Chancellor by Prime Minister Andy Burnham at the end of July.
Responding to that first letter in August, Healey wrote: “There is a great amount to do during the coming months and I look forward to working with you to achieve our mutual goals.”
Business rates, NI and retail crime
Among the concerns raised in Patel’s latest letter are:
- Rogue trade and retail crime rates remaining unacceptably high, despite a recent plateau, with a call for continued investment in neighbourhood policing and ring-fenced resourcing for trading standards teams;
- Raising the employer National Insurance Contribution threshold above £5,000 to at least £7,000, to help small shops boost employment for part-timers and young staff;
- The impact of business rate increases and the loss of Small Business Rates Relief after the April revaluation, with a call to raise the 100% relief threshold from £12,000 to £18,000 or higher; and
- Action on energy bills, with the Fed highlighting work with Sarah Edwards MP on a Trust and Transparency Charter to create greater competition in the energy market.
Patel: factor small retail into Budget decisions
Concluding the letter, Patel wrote:
“This remains a challenging time for our members and those across the independent convenience sector as they continue to face high taxation and high energy costs. Whilst the Fed acknowledges the fiscal challenges the government must deal with, we hope that the needs of small retail businesses — and the wider social and economic benefits they provide — are also factored into the decisions you will need to make in this Budget and beyond.”
The Fed is the trading name of the National Federation of Retail Newsagents and represents independent convenience and news retailers across the UK and Ireland.
