The body representing independent traders – the lifeblood of town and village centres nationwide – fears Chancellor Rachel Reeves will adopt a proposal put forward by big retailers to apply a 20 per cent discount to all stores in October 30’s Budget.
This would see business rates for small shops increase by 300 per cent, an increase from £25,000 to £75,000, because they would lose the current 75 per cent relief brought in by the last government.
The British Independent Retailers’ Association has urged Ms Reeves to maintain the current level of relief for small shops, pubs, restaurants and other leisure venues.
The Retail, Hospitality and Leisure Relief Scheme has been in place for two years but ends in March. Labour pledged in its manifesto to reform business rates. But the Chancellor has to plug what she claims is a £22billion black hole in the public finances.
Andrew Goodacre, CEO of Bira, is concerned the British Retail Consortium, which represents big businesses like supermarkets, wants the relief to end so they can “share the spoils with its larger members”.
He said: “The danger is the Treasury and the Chancellor thinks, ‘the BRC is a credible organisation, if they are suggesting that it must be good. It will save them money’. Surely you don’t sacrifice smaller retailers on the high street for the sake of big retailers.”
A report earlier this year found 38 high street businesses a day were closing, so Mr Goodacre argues any rate change “could be catastrophic”.
He said: “The thought of the relief disappearing or changing in any way is filling retailers with fear. It’s all our members are talking about.”
Helen Dickinson, BRC chief executive, said: “Retail accounts for five per cent of the economy, but pays 7.4 per cent of all business taxes and over 20 per cent of all rates.
“Our proposed Retail Rates Corrector – a 20 per cent downward adjustment in rates paid on all retail properties – aims to fix the disproportionate burden on our high streets.”
