Greeting Card Association adds signature to IRC letter calling for action as retailers brace for price rises
Independent retailers’ concerns over energy price hikes are being raised with the Government in a hard-hitting joint letter involving the GCA as a member of lobbying platform the Independent Retailers’ Confederation (IRC).
GCA ceo Amanda Fergusson was at the IRC meeting last Tuesday, 23 August, which reviewed feedback from members on energy price increases and the threat to their businesses.
And the confederation – which represents 100,000 independent retailers through its 19 members, including the GCA, British Independent Retailers’ Association (BIRA), Booksellers Association, Association Of Convenience Stores, National Federation Of SubPostmasters, and Federation Of Independent Retailers.
With full backing from its council members, the GCA added its support to the collective letter being sent to Liz Truss and Rishi Sunak, the two candidates battling it out to take over from Boris Johnson as Prime Minister.
Amanda told PG Buzz: “With energy costs doubling or more in some of the examples shared there was a real concern for the indie retailers, particularly post-Christmas, with concerns that many could close in January and February so ensuring the matter is high on the leadership challengers’ agenda was a key point.
“The energy price rises are, of course, not confined to our independent retailer members, with all publishers and our industry’s trade suppliers also being battered by the cost rises but at least, through the IRC, we can highlight the plight of independent retailers.”
GCA council members have reviewed the open letter which BIRA has drafted on the IRC’s behalf urging Truss and Sunak to take action, and in particular:
- Maintain 100% business rates relief for retailers.
- Persuading energy companies to place a cap on energy increases for businesses.
- A reduction to the multiplier for small businesses from 2023/24.
- A cut VAT for retailers to stimulate demand.
- Provision of more funding to encourage investment in low energy technology in retail shops to protect retailers from higher energy bills in the long-term.
The letter, signed by BIRA ceo Andrew Goodacre on behalf of all IRC members, points out the importance of retail to the UK economy and that retailers are also being hit by the rapid escalation in prices and inflation as well as consumers.
With 3,000 independent retail businesses as BIRA members, Andrew states: “Retail is 5% of the UK economy, pays 10% of all business tax and 25% of business rates – £7billion. It provides three million jobs and touches the lives of millions of people every day, giving people a place to interact with one and other, promoting social interactions and networking, strengthening interpersonal ties and community cohesion.
“In addition, the convenience to customers of having access to goods and related services through independent retailers in their communities cannot be overstated. Shopping locally is efficient for shoppers and better for the environment. It also provides more vulnerable and older people with choice they would otherwise not have. However, retailers, especially independent retailers, are under threat through the increased cost of doing business.”
The move comes as BIRA revealed almost 88% of its members feel they will be forced to raise their prices to shoppers once the energy price jump comes into effect in the autumn.
In a survey carried out following the IRC meeting, but before Ofgem announced on Friday 26 August, that energy prices will increase by up to 80%, BIRA members – who include greeting card and gift retailers – responded that they are preparing for the worst.
Of the 47 responses, 65% said they would be forced to reduce the number of staff or reduce wages, while 40% were considering limiting opening hours, and almost 23% would be looking to permanently or temporarily close the business.
Talking about the survey, Andrew said: “Businesses are under great pressure at the moment and with some concerned that they need to reduce hours or even close permanently it is incredibly worrying for us and the local economy.
“There has been no specific help coming through from central or local authorities to help businesses who are struggling with their bills which has been very disappointing. While some areas may have hardship funds or slight reductions in business rates, this is not seen across the country. It’s clear to us that businesses are being targeted by energy providers to make up for any restricted price caps on consumers.”
BIRA has long been championing a radical reform to business rates, which the letter also mentions, and Andrew added that any business rate relief would be welcome, as small companies would still be paying 100% more this year compared to last year when the Government’s Covid19 measures were still in force, but keeping rates lower would have helped indie retailers absorb the higher energy costs.
“They will certainly need help as the rates for electric are increasing daily and we have just been told that one provider is charging 94p per KWH for electric – the highest we’ve seen so far,” he said.
Top: Letter targets leadership candidates Liz Truss and Rishi Sunak
