Ahead of the draft Welsh budget on 10 December 2024, the Welsh Retail Consortium (WRC) is calling on Ministers to pass a Welsh Budget which is pro-business, avoids adding unwarranted costs onto business, and supports economic growth.

The WRC sent its detailed Welsh Budget recommendations paper to Ministers and MSPs in October. It contained suggestions for cutting the cost of government, delivering competitive taxes and regulation, and delivering on the Retail Action Plan.

The leading trade body has since highlighted the sheer magnitude of the decision in the UK Budget on employer’s national insurance contributions had ‘fundamentally altered the outlook’, as it would add £120 million each year to Welsh retailers’ costs. The WRC says the tax hike will have a disproportionate impact on the retail industry which employs over 120,000 people in Wales.

Speaking ahead of the Welsh Budget, the Head of the Welsh Retail Consortium, Sara Jones, said:

The economic climate remains hugely challenging for the retail industry given a backdrop of little to no growth in retail sales, nosediving footfall and greater outlays to run their business. The UK budget has compounded these pressures, with Wales’ retailers now facing a £120 million increase in their tax bill following the Chancellor’s announcement that employer national insurance contributions are to rise. With retailers making decisions about how and where to invest in the coming years, there will much interest in the Welsh draft budget being presented to the Senedd on Tuesday.

In the face of these pressures, the Welsh Finance Minister has the opportunity to inject some confidence back into the economy, boosting spending and helping to foster much needed investment by businesses. It’s vital that the broken business rates system, which is currently holding back investment in jobs and communities across the retail industry, is addressed head on. By introducing a Retail specific discount - a 20% adjustment to retail property rates bills – the Finance Secretary could help drive investment in local high streets and communities, creating jobs and boosting consumer confidence.

Note: The Welsh Retail Consortium’s Welsh Budget recommendations paper:

https://brc.org.uk/news/corporate-affairs/wrc-publishes-welsh-budget-submission/

-ENDS-