subject: With the 2011 Budget Fast Approaching UK Business Calls for a 'Business Budget' [print this page] With the 2011 Budget Fast Approaching UK Business Calls for a 'Business Budget'
The retail industry has been hit hard over the last few years and many companies have struggled to survive. Recent Government policy decisions have hit the retail industry hard, and now the British Retail Consortium (BRC) has urged the Chancellor, George Osborne, to introduce measures to support the struggling British economy in this month's budget.Many retailers feel like their sector of the economy is bearing more than its fair share of the economic pain being inflicted on the economy during the recession. Unable to raise direct taxes, taxes on spending like VAT have hit retailers hard as they rise to 20 per cent. A rise in the minimum wage and scheduled increases in National Insurance and Business Rates may well force more retailers out of business. The spectre of interest rate rises to combat inflation could also see an increase in mortgages and rents.Interest rates will also increase towards the end of this year it has been announced by the Bank of England, so the concern is that a rise in interest rates will again hit small companies who are lucky enough to have commercial mortgages, as repayments will increase. Since the recent crash of the UK economy, which also affected worldwide markets, new measures have already been introduced by the Government including cuts on Government spending, tax increases and many other policies to increase the country's economy and markets, but businesses are now suffering further losses as they struggle to afford the new costings.Another concern of the small business sector lacking in growth is that this will cause employment levels to stand still, as slow expansion and growth will mean there will not be a need for additional staffing. This is one reason that it would appear sensible of the Government to cut smaller firms some slack to allow a quicker recovery.A twenty point plan has now been submitted by the BRC to the Chancellor and the body has asked for a number of steps to be implemented. This includes a suspension in April's planned fuel duty increase and a request that minimum wage increases can be announced 18 months in advance in order to allow employers to prepare for increases in the wages bill.The British Retail Consortium have stated that if the Government do not assist the growth of the smaller companies sector, they will be limiting the growth of the entire economy and so it would be wise to consider this in their budgeting.The manufacturing sector have also called for assistance by asking that the Government clearly sets out their plans for the growth of the economy to allow businesses to be more prepared, and to increase interest in their sector to aid its revival. The most pressing concerns to the EEF seem to be an overhaul of the tax and banking system, making finance more available. The banks are currently able to make huge profits, Barclays posting profits up by 3 billion, but they are reluctant to loan money to 'high risk' manufacturers. There is demand for more oversight over the banks to ensure that they continue lending to manufacturers and small enterprises.Without the ability to obtain credit, new and small businesses are unable to expand, and expansion includes the employment of new or further staff. It is therefore being called that the Government address the lack of assistance from banks to ensure that businesses are still able to grow if our economy is to recover at all.
