Responding to the
Chancellor’s Spring Statement, Helen Dickinson, Chief Executive
of the British Retail Consortium, said:
“Last week, we wrote to the Government to call for reform to the
Apprenticeship Levy. By improving the flexibility of the way
Apprenticeship Levy funds are spent, the government could help
create thousands of new retail apprenticeships. We are heartened
to hear that the Chancellor has heard our concerns and is set to
examine whether the Levy could be improved, to allow businesses
to invest in the right training. We urge him to introduce
measures which allow high-quality short courses in functional
skills, allow Levy funds to cover associated training costs, and
allow a wider range of courses to be supported.
“The Chancellor also announced an initial cut to National
Insurance Contributions that will save households around £300,
with a further cut to income tax in 2024. This reduction will
come as a welcome relief for consumers at a time when households
across the country are squeezed by the cost of living crisis.
Nonetheless, with the energy price caps rising in April, and
inflation now running at a 30-year high, households are likely to
see a fall in their discretionary income over the course of 2022.
“The Chancellor announced reforms to research and development tax
credits to support business investment and increase productivity.
However, if he wants to increase investment by retail businesses
that would create jobs, increase productivity, and benefit towns
and high streets, he should also focus on bringing down the
unsustainable business rates burden. Currently, retail businesses
pay 25% of all business rates, despite accounting for 5% of the
economy. The announcement of a 50% relief is a welcome help to
small businesses but will have little impact on the industry’s £8
billion business rates bill. Better news was given through the
announcement that the ‘green investment relief’, that supports
environmental property improvements, will be brought forward.
This will support the investment the industry is making to become
net zero by 2040, ten years ahead of the government target.”
