Retailers React - Autumn Budget

Every year, the budget impacts every part of the economy. Due to the above average number of employees and reliance on wider economic confidence, retail is especially affected by changes made in the Autumn Budget, some of which include:

• National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.
• Beer, cider and spirits duties to be frozen. Cost of a bottle of wine duty to rise by 8p, in line with inflation, in February.
• Tobacco duty will continue to rise by inflation plus 2%. A packet of 20 cigarettes will go up by 33p.
• Business rates bill for firms with a rateable value of £51,000 or less to be cut by third over two years.
• £900m in business rates relief for small businesses and £650m to rejuvenate High Streets.

Despite rate changes positively impacting 90% of independent stores, retailers have reported that concerns around wages and taxation trump the benefits of lower business rates. Out of the responses we got, 62% of retailers are concerned that the new budget will have a negative impact on them and their stores.

Some of the worries they have include the increase in the prices of supplies, utilities, and the most popular expected impact, National Minimum Wage. Furthermore, despite the cut in Business Rates, some retailers aren’t expecting any impact.

How may the Autumn Budget impact your business?

Although 62% of retailers said that they’re anticipating a negative impact by the changes in the Autumn Budget, 38% said that they are expecting no or positive impact on their business. The changes made in the budget will happen. The questions that retailers are left with is as to how they will react, and adapt to drive their businesses forward.