The Association of Convenience Stores (ACS) has called on Chancellor John Healey to take action on business rates, crime and the cost of employing people to relieve the pressure on local shops dealing with a cost of trading crisis.
Over the last two years alone, business rates bills have risen by over 70%, the ACS pointed out, while Employer NI costs have almost doubled.
Combined with year-on-year increases in the National Living Wage, expensive changes to employment rights and volatile energy costs, local shops are being left with very little room to breathe, it added.
In its submission to the Chancellor ahead of the Budget on 28 October, the ACS has called on the Government to give retailers the opportunity to invest in their long term futures by taking action in several key areas.
Broken rates
It said it wanted Healey to fix broken business rates by reducing the small business rate relief multiplier by the full 20p available to the Government, and increase the point at which businesses start paying business rates to £18k rateable value.
It also urged that the revenue generated from the Vaping Products Levy coming into force in October to be used to tackle crime and dodgy shops, to better deal with those that sell illicit products and don’t follow the rules.
Thirdly, the ACS called for sustainable employment, urging Healey to keep the cost of employing people under control by sticking to the two-thirds of median earnings target for the National Living Wage, and ensure that employment reforms don’t make it harder to create jobs in local communities.
ACS chief executive, Ed Woodall, said: “Convenience retailers across the country are struggling to make ends meet in the face of enormous financial pressures from business rates hikes, lost trade to criminals and illicit sellers and the ever-rising cost of employing people.
“If the Chancellor is serious about backing British businesses and creating good growth in every postcode, he must acknowledge the challenges facing local shops and take swift action.”
Ahead of the Budget, ACS is calling on retailers to make their own representations to the Chancellor through its’ #Checkout the Cost of Trading campaign. The campaign hub is available here.
The full budget submission, including all 12 policy recommendations for the Chancellor, is available here.
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