Retail groups have welcomed aspects of the Chancellor’s Autumn Statement, but warn that high business costs continue to threaten the viability of crucially needed independent retailers. 

Key elements announced by Jeremy Hunt in the House of Commons on Wednesday included: 

• A cut in the main 12% rate of employee national insurance contributions by two percentage points to 10%.

• A continuation of business rates discount for hospitality, retail and leisure worth £4.3bn.

• A 10% increase in the National Living Wage 

Commenting, Len Glenville, chair of Health Stores UK, said: “We are pleased that the Chancellor has extended business rates relief for a further 12 months. Business rates are a major burden on small retail businesses, and literally can be a make or break for some. So this measure is sensible and targeted. However, the significant increase in the National Living Wage – up 10% – announced in the Autumn Statement will have unavoidable knock on effects on costs. While we all want to ensure our staff are fairly compensated, we urge the Government to provide support for small business like those of our members to be able to absorb higher wage costs. In other words, action needs to be taken to drive down costs in other areas.”

“More generally, we are hopeful that the reduction in National Insurance will help stimulate some extra spending on local high streets”.

On 4 December Health Stores UK will participate in a meeting with Kevin Hollinrake, Parliamentary Under Secretary of State (Department for Business and Trade), at which it present members’ concerns and suggestions.

The CEO of British Independent Retailers Association Andrew Goodacre expressed both relief and concern for the announcement.

He said: “We are delighted to see the 75% discount retained and the small business multiplier frozen – it is a lifeline to so many independent retailers. However, it was disappointing to see the standard multiplier increased by almost 7%. There are many independent retailers who will now be paying more rates next year, as well as paying 10% more on labour.”

While also welcoming certain measures, Bira expressed concern about the downgraded growth forecast. Mr Goodacre added:  “We are also concerned by the downgraded growth forecast because retail needs consumers to feel better off and have more confidence in spending on the high street. We are not convinced yesterday’s statement will achieve either growth or consumer confidence.”