The heads of several industry organisations have criticised yesterday’s Budget as being “unacceptable” and “disappointing”, saying it does not properly address the challenges currently facing small businesses across the UK.
The British Independent Retailers Association (Bira) criticised the autumn Budget for “falling short” on promises to reform business rates, and warned that nearly all of its members will be paying “significantly more” in rates next year.
In yesterday’s Budget, the government outlined plans to introduce lower multipliers of 38.2p for properties with rateable values below £51,000, and 43p for those between £51,000 and £500,000 from April 2026.
However, Andrew Goodacre, Bira chief executive, warned that despite the lower multipliers, many independent retailers will still face bill increases of up to 30% next year compared to rates in 2025.
Goodacre said the measures were “not the transformation we were promised”. He continued: “Nearly all our members will be paying significantly more in rates next year. That’s simply unacceptable when businesses are already struggling with rising costs.”
With the national living wage rising to £12.71 from April and the 18-20 rate increasing to £10.85, Goodacre also described independent retailers as facing a “perfect storm” of cost pressures.
Goodacre continued: “We support higher wages, but these costs have to be absorbed by businesses already on tight margins. Business rates aren’t coming down for most shops despite government claims, labour costs are rising well above inflation, and we’ve got another four years of unfair competition to endure.
However, Goodacre did welcome measures such as the £150 energy bill reduction and extension of the 5p fuel duty cut, but said that they represented “modest relief” after years of a cost-of-living crisis that had hammered consumer spending and shop viability.
The Bira head concluded: “This is not a budget that independent retailers will welcome.”
Meanwhile, Damian Walters, the CEO of The British Institute of Fitted Interiors Specialists (BIFIS) said that yesterday’s announcement was “a disappointing budget all round”.
Summing up the Budget’s proposals, BIFIS said that not only did it “fall short of providing targeted support required for SMEs to survive and thrive”, it may also “inadvertently hinder growth and innovation within the fitted interiors sector”.
BIFIS also welcomed the increase to living wages, but said that the Budget “does not address the full scope of challenges currently facing SMEs”. The organisation said that many of its registered members are “are already contending with escalating operational costs and must now factor in higher payroll expenses resulting from this change”.
BIFIS also said it had concerns over the newly announced tax on electric vehicle owners, saying the measure could deter small businesses from adopting sustainable transport solutions, undermining environmental progress.
The institute also compared changes to apprenticeship funding to feeling “like the Government is giving with one hand and taking back with the other”. BIFIS said the Chancellor’s 6% increase to apprenticeship wages will compound existing concerns over the cost of taking on an apprentice.
More positively, BIFIS welcomed the news that the rumoured changes to VAT thresholds were unfounded and that there was no change to the current VAT scheme.
Walters explained: “The Autumn Budget, while introducing changes such as the rise in the national living wage and modifications to dividend thresholds, has missed critical opportunities to support the lifeblood of our economy, small and medium-sized businesses.
“The imposition of a new tax on electric vehicle owners is especially troubling for those in our sector who are committed to environmental responsibility. With mounting pressures from every direction, businesses require more than incremental adjustments; they need comprehensive, meaningful support to help them invest, grow, and weather ongoing economic uncertainty.
He concluded: “We urge the government to reconsider its approach and deliver tangible assistance to SMEs, ensuring their vital contribution to the economy is not overlooked or undervalued.”
The KBSA (Kitchen Bathroom Bedroom Specialists Association), however, was slightly more ambivalent about the Budget, saying that it was neither positive nor negative.
KBSA chair Richard Hibbert commented: “Small businesses mainly look to the Budget for confidence in the market, and to a degree, it is a date to pass so customers can see where they are at and get on with their purchases again. The reality is small businesses are the lifeblood of the country, but we are not considered anywhere near enough in the Budgets. This Budget hasn’t particularly been positive or negative and with so much long term items the likelihood of all being seen through is unlikely.”
Hibbert concluded: “What the country needs is some joined up thinking, long term planning and strong leaders. Small businesses will be glad the date is passed and we will do as we always have, adapt to market conditions, keep offering quality service and survive!”