Bricks and mortar retailers have called for urgent action in this year’s Autumn Budget after figures revealed flat revenue sales.
The call comes after monthly figures, published by the Office for National Statistics (ONS), show that retail sales failed to gain any ground at a flat zero per cent.
Representing thousands of retailers, the Federation of Small Businesses (FSB) has now published a report detailing what they need to see in this year’s budget reforms.
According to the association, only a “radical businesses rates reform” would help businesses as retailers continue to struggle with “surging property costs”.
This would take form as an enhanced “Retail Discount” – a relief which currently allows small retailers with rateable values of up to £51,000 to claim a 33 per cent discount on their rates bills.
The FSB said they would like to see the Retail Discount increased to “at least 50 per cent” and be made permanent and extended to small firms in other industries, such as manufacturing.
Additionally, the association says the Small Business Rates Relief should be increased from £12,000 to “at least £30,000”, to keep up with rising rateable values.
Commenting on the report, FSB National Chairman Mike Cherry said: “Business rates reform must be a priority. This unfair, regressive tax – which hits firms before they’ve made their first pound in turnover, let alone profit – continues to threaten the futures of small firms all over the country. We’ve secured important business rates mitigations in the past, but now is the time for a significant reduction in small business bills.
“Fundamentally, the business rates tax serves as a disincentive to invest. You spend money on bettering your property – by installing solar panels, or improving workplaces, for example – and the next thing you know your rates bill has shot up. It’s ludicrous.”
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