09 Nov 2022
Urgent reforms to the UK's business rates system and Apprenticeship Levy are essential to support the UK's retail industry, according to new research from the Confederation of British Industry (CBI).
The research shows that the retail sector is worth over £350 billion a year to the UK economy and supports 5.7 million jobs.
However, the fallout from Covid and the war in Ukraine continues to weigh heavily on the sector. An inflation-linked 10% business rates hike due in the spring risks plunging many firms into a fight for survival.
The CBI and the British Retail Consortium (BRC) are urging the government rethink the planned rise.
The CBI is also keen to see greater flexibility in the Apprenticeship Levy.
Matthew Fell, CBI Chief Policy Director, said: 'We are asking government to smooth the looming business rates cliff edge; without intervention, the eye-watering rises scheduled for April will present an existential threat for many businesses which communities depend on.
'Longer-term reforms which encourage investment and fresh thinking on the Apprenticeship Levy can help futureproof the sector and spur further growth.
'While this is a fragile moment for the economy, and the immediate focus is rightly on restoring macroeconomic stability, there is real ambition within retail and wholesale to help unlock the huge growth opportunities for UK businesses. They know the right actions now mean we can look forward to a 2023 of promise, potential and prosperity.'