Retailers urge spending cuts over tax hikes

The British Retail Consortium (BRC) is urging the government to focus on spending cuts rather than adding to the tax burden of retailers and other small businesses. It has warned that such measures are necessary if the UK is to avoid falling back into a recession.

As part of its latest plea to the Government, the BRC has compiled a wish-list on behalf of retailers for other budget measures that it believes will aid company’s economic recovery in the sector. These include:

• A reduction in employment costs by scrapping the 1% planned rise in National Insurance Contributions and capping 2010's minimum wage.
• An extension to the 'Empty Property Rate Relief' scheme
• Planned business rate increases should be kept at an affordable level
• More incentives to encourage companies to use renewable fuels and technologies
• More measures designed specifically to stimulate investment in business and economic growth

The BRC's Director General, Stephen Robertson, commented:

"Some tax rises may be inevitable, but no government should rely on tax hikes to reduce borrowing. The increases would have to be so large that customers' ability to spend would be wrecked, risking a double-dip recession."

Mr Robertson added that small businesses will be central to the UK’s economic recovery and that it is critical the budget gives them the necessary support to create and maintain jobs, rather than piling on additional, potentially damaging costs.