The British Retail Consortium has said that Chancellor George Osborne was right to announce a cap on business rate increases.
Help on rates announced in the Autumn Statement included extension of small business rates relief, addressing the backlog in appeals, introducing reoccupation rates relief and a two year discount of up to £1000 for retailers with properties of less than £50,000 rateable value.
The BRC said that the cap alone will immediately help retailers invest an additional £90 million in the UK economy next year, boosting good retail careers, the economic recovery, and helping local communities.
The Chancellor also announced measures to abolish employer National Insurance Contributions for those under 21 years old which will help retailers, who employ more than any other private sector industry, expand the good opportunities that are available for young people in retail.
Additionally, a series of measures were announced to address cost of living issues, including measures on fuel, energy and allowances. These could all have a beneficial impact on consumer confidence, and will be welcomed by retailers.
Ian Cheshire, British Retail Consortium Chairman and Kingfisher Group Chief Executive, said: "We welcome this two per cent cap on business rates and the announcement on reform of the system with open arms. Immediately this will boost confidence in the sector, and help retailers keep prices low.
It will safeguard 7500 retail jobs next year, as well as supporting local communities by keeping more shops open. But this is about more than just a one year reprieve, this is an important first step towards a comprehensive reform of the rates system."
The BRC's Director General outlined what is required next for business rates reform.
Helen Dickinson, British Retail Consortium Director General, said: "The Chancellor has recognised that businesses are suffering and is right to listen to retailers' concerns on business rates. The BRC has campaigned for a two per cent cap, and reform of the business rates system, and it is extremely welcome to hear it announced.
"The Chancellor has recognised the consensus that exists that the business rates system should be reviewed. The BRC is already conducting a detailed study into options to improve the business rates system with tax experts EY and look forward to playing a full part in the discussions that will take place with Government on the reform of the system.
"With the additional measures also announced today on National Insurance, retailers will be encouraged to do even more to support the aspirations of young people across the country. 40 per cent of all jobs for those under 20 are in retail, and this will help retailers provide secure career opportunities for young people."
