Experts have been sharing their views on the headline measures announced by Chancellor Rachel Reeves in her Autumn Budget speech, delivered yesterday in the House of Commons.
Retailers and suppliers, what are your thoughts on the main points announced in the Chancellor’s Budget? We would love to hear your views on how the measures could impact you and your business. Comment below or email Gifts Today Editor Clare Turner at clare@lemapublishing.co.uk
Here are some initial industry responses:
Helen Dickinson, Chief Executive of the BRC (British Retail Consortium), said:
“Retailers are counting the cost of the Budget: over £2.3 billion in increases to employer National Insurance contributions; £367 million due to the larger-than-expected rise to the National Living Wage; and a £140 million hike to next April’s business rates. These costs come into effect from April next year and are on top of other upcoming regulatory costs and an estimated £300-800 million of extra costs from the implementation of the Employment Rights Bill.
Retail employs three million people and 2.7 million more across supply chains, driving investment in jobs, communities and ultimately economic growth, right across the country. For a low margin industry, today’s Budget will hit hard, with the odds now stacked firmly against growth and investment in the short term. These new costs also risk increasing the prices customers pay at the till.
As the industry prepares for over £2.5 billion in new costs in 2025, improvements to the business rates system will not come until 2026. We welcome the recognition that retail, along with hospitality businesses, should pay lower rates. But with the detail still to be worked through, it is unclear whether this will address an imbalance which sees retail, as 5% of the economy, pay 21% of the total business rates bill. In order to stimulate investment, it is vital these changes reduce the overall costs on the industry, rather than simply shifting the burden from one part to another.”
ON CHANGES TO BUSINESS RATES FROM 2026:
“While retailers welcome future action on rates, they are assessing the impact of the announcement. There remain many unanswered questions about the new charges and discounts that will be levied from 2026. Charging more to businesses with higher rateable values may punish not only distribution hubs, but also larger stores, which play a key role in attracting footfall to high streets and town centres.
With retailers paying over 21% of all business rates in the economy, the solution is not to simply shift the burden around, but to look outside retail to address the disproportionate impact of business rates on the industry.”
ON RETAIL HOSPITALITY AND LEISURE RELIEF CHANGES:
“While the extension of the RHL relief to small businesses in 2025/26 may provide support for some small shops across the country, it also represents a significant decrease from the current year. The measures will do nothing to help bigger brands that play such a key role in attracting shoppers and delivering investment for our high streets and town centres. Thriving shops of all sizes are essential to successful high streets to ensure breadth of choice, convenience and experience for customers.”
ON EMPLOYER NATIONAL INSURANCE CONTRIBUTION RISES:
“Increases to National Insurance contributions are yet another case of piling taxes on an already overburdened industry – a decision which will reduce investment in shops and jobs. As a low-margin industry and the UK’s largest private sector employer, the scale of increases will have an immediate and disproportionate effect on both retailers and their supply chains, who together are responsible for employing 5.7 million people across the country.”
ON MINIMUM WAGE RISES:
“Retailers strongly support the objective of higher wages and pay growth in the industry. However, with retailers facing increases in costs from implementation of the Employment Rights Bill and National Insurance contributions, investment plans and economic growth will be impacted given the larger-than-expected increase to NLW. This adds £367 million more than pre-Budget expectations.”
ON RETAIL CRIME:
“We welcome the Chancellor’s firm stance on shoplifting, with the announcement on extra funding aimed at tackling a scourge that costs the industry over £1.8 billion. This is on top of the scrapping of the low-level shoplifting threshold, which has resulted in many police forces ignoring smaller crimes. Working closely with the police and Government, retailers are determined to tackle retail crime – from shoplifting, to violence against retail workers.”
Charlotte Broadbent, UK general manager of online wholesale marketplace Faire, said:
“We welcome the Chancellor’s commitment to easing the pressures on the UK high street and on small businesses, and it’s a relief for retailers that this budget has taken some action on extending the business rates discount for retailers beyond April next year and freezing the tax multiplier.
But reducing the rates discount from 75% to 40% will still mean a steep increase for them next year, at a time when many are already facing significant financial challenges.
Permanent lower tax rates on retail, hospitality, and leisure properties from 2026-27 are promising, but proof will be in the detail – and immediate relief is essential to keep high streets resilient in the face of economic pressures.
We’re also supportive of raising the employment allowance, which should come directly off every small employers’ National Insurance bill next year.
At Faire, we remain committed to supporting our community of over 50,000 independent retailers in the UK through these challenging times, by offering tools and solutions to help with financing, managing costs and growing sales.”
www.brc.org.uk
https://www.faire.com/en-gb/
