In anticipation of this year’s Autumn Budget, Menzies’ Retail Sector Team have compiled a Wishlist for the sector, covering key areas such as VAT, business rates, the national living wage, and the employer national insurance allowance, highlighting the measures businesses should focus on.
Reinstatement of VAT shopping for tourists
It has been reported that UK businesses have lost out on £4.3bn of spending this summer due to the tourist tax, which was reintroduced back in 2021.
Whilst abolishing the perk of tax-free shopping would have likely increased VAT from retail sales, other businesses profits would have been impacted, such as hotels, restaurants, travel, as well as other retail which possibly had a negative hit on the UK economy.
It is time to reinstate tax-free shopping, which would act as a turbo-charge to the economy, as well as being a good incentive for 450 million Europeans to visit the UK, as we would be the only country in Europe tax free shopping.
Permanent retail discount on rates at 75%
Retailers have stressed the importance of 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, would create a stable business environment and foster an atmosphere conducive to investment.
National Living Wage
Exercising prudence in determining the National Living Wage for 2024/5, following a sustainable trajectory that aligns with broader economic conditions, will empower the Low Pay Commission to provide independent recommendations based on the evidence presented.
Policies to improve consumer confidence and spending
The implementation of policies aimed at enhancing consumer confidence and spending would recognise the symbiotic relationship between consumers and retailers. These measures in turn would create a positive economic environment, driving growth and stability within the retail sector.
Increase in Employer National Insurance Allowance
The National Minimum Wage has risen by almost 20% in the past two years. A proportional 20% increase in the employer’s national insurance allowance would allow crucial support to businesses, helping them manage costs and maintain a balanced operational framework.
If you have any queries regarding the Autumn Budget, and how it could affect your business, please do get in touch with Menzies’ Retail Sector Team, or contact us via the form below:
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