Retail leaders anticipate Chancellor Rachel Reeves’ budget announcement with hopes pinned on vital reforms.
- Marks and Spencer highlights its significant tax contributions and hopes for business-friendly measures.
- Retailers urge the government to simplify business rates, safeguarding high street shops from financial strain.
- Widespread concern arises over potential National Insurance increases impacting employment opportunities.
- Retailers press for continuation of fair interest rates to bolster consumer spending.
As Chancellor Rachel Reeves prepares to deliver her inaugural budget, the retail sector stands vigilant, particularly focused on potential reforms to business rates. Retail executives express a unified hope for measures that will relieve the heavy tax burdens impacting both large and small retailers.
Marks and Spencer, a major UK taxpayer, emphasises its strong contribution to public finances but raises concern over National Insurance hikes. They regard such increases as impediments to job creation, echoing past sentiments that it is a ‘tax on workers’. Furthermore, they advocate for the retention of Labour’s bold promises, including overhauling business rates and offering firms greater flexibility with apprenticeship levy funds.
Retail leaders have long criticised the business rates system as outdated, with significant financial constraints reported. A notable retail executive disclosed their rates rising by £20 million in two years, severely impacting their ability to revitalise high streets. The call for equitable tax responsibility between physical and online businesses remains loud, with high street viability tied to affordable rates.
Interest rates also remain a focal concern, with industry leaders suggesting that any increase could stifle household spending. They call for clarity from the government to ensure economic decisions are transparent and supportive of growth.
David Epstein of the Frasers Group insists on a comprehensive reform of business rates, which are deemed archaic, suggesting that change is essential to prevent stifling investment in diverse and thriving high streets.
The retail industry’s burden is evident; it contributes significantly to taxes while being a major employer. A government review of business rates alongside decisive economic actions is imperative to sustain high street retail health.
The retail sector awaits Rachel Reeves’ budget, hoping for favourable reforms essential to industry stability.
