Convenience retailers are to face a raft of legislation changes in 2026, with several burdens set to impact staffing costs, profit margins and compliance. But as always, the sector will demonstrate remarkable resilience as it prepares operationally and financially for the year ahead.
HFSS Advertising
Coming into effect from Monday 5 January, this UK-wide ban prevents food and drinks that are high in fat, salt and sugar (HFSS) being advertised on television before 21:00 with additional restrictions for online advertising.
National Minimum Wage and National Living Wage
One of the most immediate impacts for retailers will be the increase in the National Minimum Wage and National Living Wage.
From 1 April, the National Living Wage (for workers aged 21 and over) will rise to £12.71 per hour, while the rate for 18 to 20-year-olds will increase to £10.85 per hour. The rate for 16-17 year olds and apprentices will rise to £8.
Business Rates
Another major area of change is business rates, following the Autumn Budget 2025. From 1 April, the government will introduce permanently lower business rates multipliers for Retail, Hospitality and Leisure (RHL) properties with rateable values below £500,000.
These rates will be 5p lower than the national multipliers, making the small business RHL multiplier 38.2p in 2026-27 and the standard RHL multiplier 43p in 2026-27.
This reduction will be funded by a high-value business rates multiplier for properties with a value of £500,000 or more, announced the government.
Vaping Products Duty and Vaping Duty Stamps scheme
A new excise duty on vaping products will be introduced from 1 October. Vaping Products Duty (VPD) will be charged a flat rate of £2.20 per 10ml of vaping liquid, regardless of how much nicotine is in the product.
From 1 October, every vaping product that is liable for Vaping Products Duty must have a vaping duty stamp attached to its retail packaging before it can be sold legally in the UK, as part of the Vaping Duty Stamps (VDS) scheme. Retailers should ensure every vaping product has the required duty stamp after this date.
From 1 April 2027, it will become an offence to sell vaping products without a duty stamp unless they are under specific duty suspension arrangements. Selling unstamped products after this date can lead to penalties, said the government.
Tobacco and Vapes Bill
The Tobacco and Vapes Bill progressing through Parliament will significantly affect how retailers sell age-restricted products.
In the Bill, the government intends to create a ‘smoke-free generation’ by phasing out the sale of tobacco products to anyone born on or after 1 January 2009.
The Bill includes powers to introduce a licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland, as well as a new £200 on the spot fine for underage sales.
Other measures include a ban on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes and other nicotine products.
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