Bira is calling for action on business rates and employment costs as independent retailers seek clearer evidence that the government’s growth strategy will reduce the cost of running shops.
The British Independent Retailers Association (Bira) has urged the government to take further action on business rates in the upcoming Budget, arguing that its growth ambitions must translate into lower operating costs for independent retailers.
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The intervention follows Chancellor John Healey’s growth speech on 7 September, in which he reaffirmed the government’s commitment to reducing the burden of business regulation by 25% by the end of the current Parliament. Healey also said the Budget would set out a roadmap for greater business rates retention by local councils and strategic authorities as part of a wider programme of fiscal devolution.
Bira welcomed the emphasis on growth but said independent retailers now need measures that deliver tangible savings for businesses on the high street.
Andrew Goodacre, chief executive of Bira, said: “We welcome the Chancellor’s focus on growth, and we share his ambition to deliver sustained growth for the UK economy.”
“Independent retailers want to play their part in that growth,” he added, arguing that consumer spending with British-based businesses would benefit high streets most directly.
Goodacre urged the Chancellor to use the Budget to address business rates and employment costs, giving independent retailers “a real reason for hope”.
Business rates remain a key concern
Bira’s call comes months after England’s latest business rates revaluation took effect on 1 April 2026.
At the same time, qualifying retail, hospitality and leisure properties with rateable values below £500,000 became eligible for permanently lower business rates multipliers.
For 2026/27, the multiplier is 38.2p for qualifying properties with rateable values below £51,000 and 43p for those valued between £51,000 and £499,999. More than 750,000 properties are expected to benefit from the lower retail, hospitality and leisure multipliers.
The permanent multipliers replaced the temporary retail, hospitality and leisure relief available during 2025/26. The government has also introduced transitional measures to limit some increases in bills following the revaluation.
However, the impact remains uneven. Changes in rateable values and the withdrawal of previous relief mean some independent retailers can still face higher business rates bills despite the lower multipliers.
For bricks-and-mortar retailers, property costs are a significant operating expense, influencing decisions on staffing, investment and store viability.
Bira seeks reform rather than further reviews
Beyond changes to rates, Healey’s growth strategy proposes giving local councils and strategic authorities greater control over business rates revenue through fiscal devolution.
The Chancellor said the government would set out a roadmap at the Budget for a “permanent transfer of power and resources” to the regions, including greater business rates retention for local councils and strategic authorities.
The government says the wider approach is intended to give regions greater control over resources and support economic growth. For retailers, however, the practical benefit will depend on whether greater local control leads to stronger town centres and high streets.
Bira said the upcoming Budget would be a critical test of whether the government’s growth agenda delivers meaningful change for smaller businesses.
Goodacre said independent retailers wanted to see “meaningful reform, rather than further reviews and roadmaps”.
Budget will test growth ambitions
Business rates are only one element of the cost pressures facing independent retailers, alongside labour, energy and regulatory costs. In his speech, Healey acknowledged that the cost of doing business, including energy bills, regulation, planning constraints and labour costs, has increased since the Covid-19 pandemic.
The government has pledged to reduce the burden of business regulation, while Bira is calling for measures that have a more immediate effect on retailers’ costs.
With the Budget expected to set the direction for the government’s next phase of economic policy, independent retailers will be looking for practical measures that support investment and the viability of physical shops, rather than further reviews and future commitments.
