This afternoon, Chancellor Rachel Reeves gave an update on her plans for the UK’s economy.
In a speech that was much more upbeat compared to her autumn statement, Reeves said she was on track to beat her target on the nation’s borrowing as well as reiterating her claim the Government was behind working people - unlike the Conservative party.
Economists had predicted the stament would be one free of shock and headline-grabbing changes, and they were broadly correct. While growth forecasts were downgraded to 1.1%, again, many economists had predicted this.
Following on shortly from this, the Office for Budget Responsibility (OBR) issued its latest report, which saw its forecast for unemployment increase to 5.3% this year - rising from its prediction of 4.9% in November 2025. It was also at pains to say the conflict in the Middle East has not been factored into any of its predictive figures.
In response to Reeves’ statement, the Association of Convenience Stores (ACS) has called on the Government to urgently set out a plan to incentivise growth and investment in the convenience sector, after no action was mentioned to reduce the impact of impending rates hikes.
Ahead of the today’s statement, the ACS wrote to the Chancellor outlining the need for further support for local shops, especially those run by independent retailers who are set to be hardest hit by increases in business rates bills in April.
In the letter, and also in evidence given to parliament last year, the ACS called on the Government to set the multiplier for retail, hospitality and leisure businesses a full 20 lower than the standard rate.
From April this year, retailers will lose the remaining 40% business rates discount that was in place in 2025, as well as seeing their rateable values increase as a result of the 2026 revaluation. The Chancellor announced a package of transitional relief in the November Budget, but the ACS has warned this doesn’t go far enough and will still result in retailers facing four figure increases in their bills this year.
“Local shops will be disappointed the Chancellor has not taken this opportunity to mitigate the impact of cost increases…”
New ACS chief executive, Ed Woodall (left), said: “Local shops will be disappointed the Chancellor has not taken this opportunity to mitigate the impact of cost increases coming in April. The limited package of measures announced in the Budget last year will come as no comfort to retailers seeing their business rates bills increase by thousands of pounds in the coming weeks, in addition to significant increases in employment costs being felt across the sector.
“The Government needs to urgently set out a credible plan for how it’s going to incentivise investment and growth, as difficult decisions are already being made by local shops on reducing wage bills, delaying investment plans and impacting the availability of services to customers.”
The Government had advised ahead of the Spring Statement, which is used primarily to update parliament on the OBR’s economic forecasts, that there were unlikely to be any major policy announcements in the Chancellor’s speech, but the ACS has warned that retailers cannot afford to wait until the autumn for any meaningful support.”
Also responding to the statement, James Walton, chief economist at the Institute of Grocery Distribution (IGD), said: “As expected, the Chancellor’s Spring statement was a forecast only update and the food and drink industry will welcome the stability that brings.
“However, with the OBR downgrading growth for 2026, this does add extra pressure for the food and drink industry, which is experiencing ongoing flat demand.
“Compounding that challenge, the Chancellor also highlighted the rise in young people not in education, employment or training (NEET). For labour-intensive sectors such as food and drink, tackling youth disengagement is now central to building a resilient future workforce.”
You can now secure your tickets to the Convenience Awards 2026!
Join us on 11 March in Liverpool to celebrate the entire convenience community.
See this year’s finalists and book your seat here.
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