Retailer’s champion says High Street needs government to act in spring budget
Retailers’ champion BIRA has called on the government to do more to protect the High Street following the latest blow with The Body Shop calling in the administrators.
The “sad news” led to British Independent Retailers’ Association ceo Andrew Goodacre stating: “High streets and local shops are vital to communities everywhere and more needs to be done to help them through these very challenging times.”
BIRA works with over 6,000 independent retailers including greeting card and gift shops and wants the economy to grow to restore consumer confidence and, with chancellor Jeremy Hunt working on the next budget due in March, has just set out its five-item wish list to help the government save the High Street.
Andrew said the wish list “represents a collective vision for a vibrant and flourishing retail landscape”, and BIRA believes the government can lay the groundwork for a prosperous future for independent retailers and the UK economy as a whole by that by addressing these issues in the Spring Budget.
“It seems we hear about the demise of a national retailer every few months,” he added. “This time it’s The Body Shop, a stalwart of the High Street, it is sad news and we hope the employees and franchisees are looked after while the future of this chain is decided.”
The Body Shop was set up in 1976 by Anita Roddick, who was made a dame for her work with the business and environmental campaigning, and has changed hands a few times since she sold the company in 2006.
The latest owner is German private equity firm Aurelius which bought the business for £207million less than three months ago but trading over the Christmas period was not as strong as anticipated – and on Tuesday, 13 February, it confirmed it has appointed FRP Advisory as administrator following the group’s collapse in the UK, threatening up to 2,000 jobs. The retailer’s international business will not be affected by the collapse.
According to the owner, appointing administrators “provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising this iconic British brand”.
Andrew added: “There is no doubt that, since the cost-of-living crisis started in 2022, life on the High Street has been very difficult for retailers large and small. Shoppers have felt inclined to spend less on so-called non-essential items and official retail sales figures are showing decline in sales volumes.
“The loss of The Body Shop should serve as a reminder to the chancellor that the economy needs growth and he should use his upcoming budget to restore consumer confidence by focusing on economic stability and growth.”
BIRA’s wish list to help the government save the High Street suggests:
1 Permanent retail discount on business rates at 75% – making the current retail discount permanent at 75% for businesses with a rates payable value of up to £110,000 per annum. This measure, coupled with a frozen rates multiplier, aims to create a stable business environment and foster an atmosphere conducive to investment.
2 Policies to improve consumer confidence and spending – a call for the implementation of policies aimed at enhancing consumer confidence and spending. Recognising the symbiotic relationship between consumers and retailers, Bira believes these measures will create a positive economic environment, driving growth and stability within the retail sector.
3 Increase in employer national insurance allowance – by April, the national minimum wage will have risen by almost 20% in the past two years so Bira is advocating a proportional 20% increase in the employer’s NI allowance to help them manage costs and maintain a balanced operational framework
4 Reintroduction of tax-free shopping in the UK – with the aim of stimulating retail activity, particularly in tourist destinations, this move is expected to foster increased spending, catering to the rising number of tourists and promoting economic resilience within the retail sector.
5 Action to free businesses from expensive energy contracts – given the recent fall in energy prices, Bira wants immediate action to financial burdens on retailers, enabling them to redirect resources toward growth and sustainability.
