Faltering consumer confidence in the high street continues
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The British Retail Consortium (BRC) has called on the government to introduce a freeze on Business Rate increases in April 2013 in an effort to re-establish growth and “re-build consumer confidence" in the UK high street.
In its pre-Budget submission, the trade association for the UK retail industry argued that such a move is necessary in the light of ‘exceptional’ increases in both 2012 and 2011. The BRC feel that scrapping the planned business rate hike this year is one of the ways that struggling retailers can be supported in addressing the widening gulf between escalating costs (+21%) and increasing sales (+ 12%).
Republic become the latest high street victim
This discrepancy is "forcing store closures and curtailing job creation", according to the BRC, with fashion retailer Republic becoming the latest victim of subdued consumer spending after they fell into administration last week.
"Retail is a major force for good," said Helen Dickinson, director-general of the BRC.
"It's the UK's largest private sector jobs provider and has been a powerhouse for investment and growth, even during the relentlessly tough times of the last few years. There were welcome measures in the Autumn Statement and the Chancellor has it within his gift to do a great deal more. Our figures show dramatic increases in operating costs, often as a direct result of Government decisions," she continued.
The BRC’s recommendations ahead of the March 20th Budget announcement also include measures to tackle the continued squeeze on consumer spending power, arguing that the government should bring forward increases in personal Income Tax allowances.
Further consumer-focused recommendations include scrapping the above-inflation fuel duty increases for the rest of this Parliament.
Business restructuring specialists
As well as individual consumers, a number of businesses may find themselves in a financially distressed situation in 2013. Seeking advice from a business restructuring specialist could make a crucial difference in terms of how your company deals with the situation.
The British Retail Consortium (BRC) has called on the government to introduce a freeze on Business Rate increases in April 2013 in an effort to re-establish growth and “re-build consumer confidence" in the UK high street.
In its pre-Budget submission, the trade association for the UK retail industry argued that such a move is necessary in the light of ‘exceptional’ increases in both 2012 and 2011. The BRC feel that scrapping the planned business rate hike this year is one of the ways that struggling retailers can be supported in addressing the widening gulf between escalating costs (+21%) and increasing sales (+ 12%).
Republic become the latest high street victim
This discrepancy is "forcing store closures and curtailing job creation", according to the BRC, with fashion retailer Republic becoming the latest victim of subdued consumer spending after they fell into administration last week.
"Retail is a major force for good," said Helen Dickinson, director-general of the BRC.
"It's the UK's largest private sector jobs provider and has been a powerhouse for investment and growth, even during the relentlessly tough times of the last few years. There were welcome measures in the Autumn Statement and the Chancellor has it within his gift to do a great deal more. Our figures show dramatic increases in operating costs, often as a direct result of Government decisions," she continued.
The BRC’s recommendations ahead of the March 20th Budget announcement also include measures to tackle the continued squeeze on consumer spending power, arguing that the government should bring forward increases in personal Income Tax allowances.
Further consumer-focused recommendations include scrapping the above-inflation fuel duty increases for the rest of this Parliament.
Business restructuring specialists
As well as individual consumers, a number of businesses may find themselves in a financially distressed situation in 2013. Seeking advice from a business restructuring specialist could make a crucial difference in terms of how your company deals with the situation. If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143. |