New Collections? The Emergency Budget 22 June

It is amazing how fashions can change through the seasons. Fashionista recalls that only a few months ago red was the "in" colour.

One new collection/general election later and it seems that "blue" and "yellow" are now the "in" colours - but which of the two colours will dominate?

Darling is no longer the designer du jour; George & Vince are the new designers on the block.

Everyone expects the cuts in the George & Vince collection/emergency budget to be quite extreme, but just how extreme?

Will they help out their fellow designers and entrepreneurs by granting the "generous reliefs" from the increase in CGT rates that were previewed in the Coalition Agreement? Will retailers be hit by an increase in VAT rates?

As with any collection/budget, there is always a lot of speculation about what will be revealed on the catwalk/in the budget speech, but the level of speculation this year has been unprecedented.

Fashionista, however, knows the best place to enjoy the collection/budget on the day - the Olswang Budget Blog .

Fashionista hopes to see you in the front row!

Budget 2009 - The Retail Summary

Fashionista has called upon her knowledgeable tax contacts to help explain the impact of the budget on the retail sector. The attached scorecard looks at what measures the Chancellor has taken in the Budget to assist retailers.

This has been prepared by reference to the BRC's Budget Submission dated March 2009 to see if the Government did in fact take on board any of the steps proposed by the BRC. For a summary of the budget in general, Fashionista has included another useful link.
(Picture: www.copyright-free-pictures.org.uk)

Fashionista finds it very useful to have friends in the right places to help explain these things to her!

BRC budget submission 2009

Fashionista has just finished reading the British Retail Consortium's budget submission for 2009. As we all know, it has been a challenging time for retailers and the prospects for recovery in 2009 do not look good with many believing that it will be the toughest year in decades.

The BRC have therefore produced a document which has been sent to the Government setting out the measures which they believe need to be put in place to assist retailers to weather the current downturn and help put retail on the road to recovery.

The submission concentrates on preserving opportunities by avoiding the imposition of additional costs on retailing and promoting new opportunities by investing for the future to secure recovery. Fashionista has summarised some of the key points covered in the submission below:

Property

The BRC asks the Government to address property cost burdens which is clearly a high priority in a property intensive sector. The submission proposes an immediate freeze on all new business rate burdens and a reinstatement of Empty Property Rate Relief. In addition, the Government is asked to ensure that new development is not deterred as a result of new and heavy burdens following the introduction of the new Community Infrastructure Levy.

People

Retailing has always been a major local employer with around 3 million people, or 1 in 9 of the working population, employed by the sector. The submission therefore focuses on measures which can be taken in this area to support businesses. One such suggestion is that this year's National Minimum Wage increases should be kept to no more than 1-1.5% to enable retailers to maintain, and where possible increase, job opportunities. The Government is also encouraged to drop its proposed National Insurance increases.

Process

The temporary VAT reduction has cost retailers millions due to the short notice and timing. Further significant costs will result from the return to the 17.5% currently scheduled for 31 December 2009. BRC proposes that the reintroduction of the 17.5% VAT rate is postponed by at least one month so as to miss the important post-Christmas sales period.

Fashionista hopes that the Government takes some, if not all, of the proposals on board which will hopefully go some way to easing the pressure on fashion retailers over the coming year. Fashionista will be doing all she can to boost the retail market herself - as if she ever needed an excuse to do more shopping!