Retra has welcomed the measures laid out by Chancellor Rishi Sunak in today’s Budget, which included the extension of the furlough scheme, the introduction of a new Restart Grant for businesses and a business rates holiday.
Commenting on the Chancellor’s latest initiatives, Retra chief executive, Howard Saycell, said: “All in all, I think our members will be relatively happy with the Budget that has been announced.
“It looks like the main pillars of support will remain in place after reopening and give the economy some time to recover before stripping that support away.
“We have lobbied hard, along with our colleagues at the British Retail Consortium (BRC), for a gradual easing of support, rather than to just cut it off once we can reopen. We will need to examine the small print, but on the face of it, the Government appears to have listened.”
Responding to the Chancellor’s Budget, Helen Dickinson, chief executive of the British Retail Consortium, echoed Mr Saycell’s views.
She said: “The Chancellor has listened to many of our concerns and we welcome the extension of key business funding schemes. This announcement provides some targeted support to struggling businesses across the country. Action to support the retail industry will be vital to reviving the economy – including business rates relief, restart grants and loans, and an extension to the furlough scheme.
“However, for many retailers the devil will be in the detail, with caps on funding limiting access to this support. Retail accounts for over three million jobs, spread across every region of the UK; supporting the success of our industry will be essential to unlocking consumer spending and driving forward the UK’s economic recovery. The Chancellor must keep the situation under review, as we wait to see how the economy responds to reopening.”
On business rates, Ms Dickinson said: “The Chancellor has taken steps to avoid the business rates cliff edge on 1 April, and the three-month extension will provide essential funding at this challenging time. Beyond this point, relief is capped at only £2m for closed businesses, a tiny fraction of their total liability.
“Without further funding, it is likely that many ‘non-essential’ retailers will struggle under sluggish consumer demand and high COVID costs. The business rates system remains broken; it is vital that the ongoing business rates review delivers on its promise to reduce the burden on retail which already results in store closures and job losses.”
In the Budget, the Chancellor (pictured) announced that furlough will be extended until the end of September, with the Government continuing to pay 80 per cent of employees’ wages for hours they cannot work. Employers are to be asked to contribute 10 per cent in July and 20 per cent in August and September.
The £20 uplift in Universal Credit is to be extended for another six months and the minimum wage will increase to £8.91 an hour from April.
Incentive grants for apprenticeships will rise to £3,000 and £126 for traineeships, while business rates holiday for firms in England will continue from April until June.
The Government will also make available £5bn in reopening grants for non-essential businesses of up to £6,000 per premises.
Corporation tax will increase to 25 per cent from 2023, but income tax thresholds will freeze, under Budget plans.
The Chancellor also announced that 600,000 more self-employed people will be eligible for help, as access to the Self-Employment Income Support Scheme (SEISS) is widened, based on tax returns for 2019-2020.
A fourth SEISS grant will be available to claim from next month, worth 80 per cent of three months’ average trading profits up to £7,500 in total, while a fifth grant will be available from May this year.
Mr Sunak said: “Our COVID support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.
“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”
