A triple blow of doubled business rates, increases in National Insurance and higher minimum wage costs, announced in the Chancellor’s first Budget, (30 October), was widely condemned by the British Independent Retailers Association (Bira) as well as retailers across the board, to include gift retailers.
Andrew Goodacre, ceo of Bira, said: “This is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government’s actions show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.
“Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they’re hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, with many members telling us they simply cannot survive this onslaught.
So what has been the reaction from independent gift retailers?
“I really don’t know what to say about the Budget!!! I am practically lost for words. And the truth is that it brought me to tears,” admits Anne Barber, owner of In Heaven At Home in Market Harborough. “I can’t imagine how causing so much damage to small independent businesses can be good for the economy. Are the government so far removed from the lives and financial difficulties of shopkeepers that they simply do not understand the impact that all of this will have or are they happy to see an increasing number of businesses being forced to close? I feel absolutely distressed by the actions of the Chancellor,” added Anne.
“I found the Budget to hit small businesses extremely hard,” agreed Jo Williams, owner of Joco in Nuneaton. “In April 2025 I have to find funds for a doubling of business rates, the increase in wages and the NI threshold and rate, bringing all my staff within the range to make further payments. This would all be covered if we were still getting the sales we were reaching pre-Covid, but sadly sales have been hit hard and we are currently running at least 50% down every month. This is not a Budget for growth for businesses which is what we need right now.”
Bill Nettelfield, owner of Bill & Bert’s in Colchester, concurred: “The news on business rates means that this is the least Budget for growth I can remember. The effect of the enormous increase in rates has no justification for the high street that anyone with a basics in maths will ever understand.
“Thank you Rachel, please don’t blame anyone else for your choice to rip even more of the high street apart. Have you hit the online retailers? My rates went up over £11k.”
At Presentation in Barrowford, owner Andrea Pinder added: “Rates relief will not compensate for the rise in National insurance contributions and the hourly rate. Not only is this increasing for the over 21s, it is increasing for all age groups. This will lead to many retailers reducing hours for their employees as well as reducing opening hours, and maybe choosing to close one day in the week and possibly Sunday too. This will definitely have a major impact on small businesses that employ between five and ten people. Gifts and cards will still be purchased, but will the general public increase their spend? I very much doubt it. I will definitely be looking at price increases and reduced hours where possible.”
Andrew Goodacre added: “For all the government’s rhetoric about supporting small businesses and revitalising high streets their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their business’ future.
“What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They’re now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.”
Calling it an “anti-high street Budget”, he added: “I can only assume that the government is happy for working people to shop online and buy cheap imports. This government has shown complete disregard for local businesses that create jobs and maintain vibrant communities. It betrays every independent retailer who has fought to keep their business alive through recent challenges. It’s not just disappointing – it’s potentially catastrophic for Britain’s high streets.”
Top: Britain’s retailers have been left reeling from the Budget.
