As Chancellor Rachel Reeves prepares to announce her budget, key figures in retail are voicing their expectations.
- Many CEOs are focused on the need for reforming the business rates system, which they consider broken.
- Concerns have been raised about the impact of potential National Insurance increases on employment.
- There is a call for legislative changes to support physical retail and ensure fair taxation of online businesses.
- The need for investment in high streets and reduction in red tape are significant priorities for the sector.
As Chancellor Rachel Reeves is set to present her first budget, there is anticipation across the retail industry. Leading figures are making their voices heard, particularly around the long-debated issue of business rates reform. Among their chief concerns is the unsustainable nature of the current system.
M&S, a major taxpayer, expressed pride in supporting public services but noted worries over plans to increase National Insurance. This increase, they argue, could hinder job creation and expansion opportunities for both large and small businesses. They emphasise the need for substantial reforms in business rates and flexibility in apprenticeship levy funds.
Another key point raised by CEOs revolves around the contrast between online and physical retailers. There is a pressing need for equitable tax responsibilities to ensure high street shops remain viable. Business rates have soared, notably impacting physical retailers, with some reporting up to a 20% increase in recent years, amounting to significant financial burdens.
Retail leaders are also advocating for clear government action. Interest rates and their effect on consumer spending feature prominently in their appeals, as they seek consistent policies that favour economic stability.
The dialogue between retail sectors and government continues to be constructive, aiming for reforms that ease business operations, stimulate investment, and ultimately bolster the high streets. CEOs stress the importance of translating government promises into actual policy changes, particularly in relation to Labour’s economic growth commitments.
The UK’s retail industry is eager for effective legislative changes in the upcoming budget, addressing critical issues like business rates and taxation equity.
