Bira calls on Welsh Finance Minister to address needs of independent businesses

Ahead of the Welsh budget announcement on Tuesday 13th December, Bira CEO Andrew Goodacre has contacted the Welsh Finance Minister to address the needs of independent retailers. 

In light of the Government's recent Business Rates announcement, Bira is calling for similar changes to be made by way of fixing the multiplier, and increasing the retail and hospitality discount.

Here is the full letter issued by Andrew Goodacre, CEO to the Welsh Finance Minister:

'Firstly let me introduce the British Independent Retailers Association (BIRA). BIRA has 3,000 members throughout the UK. All of these members are independent retailers trading from physical stores on the high streets. Our membership ranges form a small pet shop to an independent department store, and we tend to be non-food (not grocery). Our mission is simple – we want independent retailers to succeed.

I am writing to you to ask you to address the burden of business rates in the forthcoming budget. We have seen action taken by the Chancellor, but obviously I am aware that business rates is a devolved responsibility. However, for retail businesses in England, next year we will see the multiplier fixed, a removal of downward transitional relief and an increase in the retail and hospitality discount (increased from 50% to 75%). These are important measures that will support large and small retail businesses who are facing a toxic environment of spiralling costs and falling demand.

I would love the see the Welsh government adopt the same approach and implement the same measures. Your government was incredibly supportive during the Covid pandemic, and at times often doing more to support small businesses than the UK government. It is important that you show the same commitment to retail this time around because:

• Independent retailers are facing overheads that have increased significantly – energy, wages and supply chain rises. The burden is proving too much and we must see the rates burden reduced significantly
• We are especially focused on the Retail Discount. This has been in place since 2019 and has become an integral part of a small retailer’s business planning. At this moment in time it needs increasing to the 75% level to allow these independent retailers to continue to serve their local communities. Large businesses, such as banks, are turning their back on local high streets and so we need to preserve the retail (and hospitality) element to ensure the fabric of the community does not disintegrate
• The results from the latest rates revaluation have just been released. The headline figure suggests that retail has seen a 10% decline. However, closer analysis has identified a worrying trend for the smaller retailer. For businesses between £12,000 and £51,000 RV, the ratable values have increased between 7% and 12% in England and Wales. That increase is hard to understand and a significant blow to smaller retailers on the high street. On the other hand, large retailers will see an average 17% decline.
• In simple terms, these measures are in line with the retail strategy. I am part of the Welsh Retail Forum looking at the future of retail. Part of that strategy states that the Welsh government will look at wholesale reform of business rates. We welcome that stated intention and will contribute where we can. In the meantime, the Welsh government could use the budget to start the process by implementing the measures announced by the Chancellor.
• The Welsh business rate multiplier is already at a 23-year high and is higher than anywhere else in GB. In the UK Government’s Autumn Statement last month, the Chancellor of the Exchequer confirmed the business rate in England would not increase next April.'

We will share an update on the upcoming budget announcements in Wales and Scotland in the coming days.

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