The Association of Convenience Stores (ACS) and other trade bodies have condemned the Government’s confirmation it will limit additional support to pubs as short-sighted and dismissive of the contribution of convenience stores to the economy.
The Treasury confirmed that in 2026-27, all pubs and live music venues will benefit from a 15% business rates relief on top of the support announced at Budget 2025. Their bills will then be frozen in real terms for a further two years. This additional relief is not being extended to retail.
The ACS has regularly called on Chancellor Rachel Reeves to go further than the support package announced today for pubs and extend help to all local shops.
In the Budget at the end of 2025, the Reeves announced a new Retail, Hospitality and Leisure (RHL) multiplier for business rates that was 5p lower than the standard rate. This was despite the Government legislating earlier in the year to be able to reduce the RHL multiplier by up to 20p.
At the same time, those RHL businesses have had to plan for the removal of the 40% Covid relief on their bills in April.
As a result of the changes to business rates, thousands of convenience stores - particularly those independently owned and operating on petrol forecourts - will see significant increases in their rates bills in the coming months.
Transitional relief will spread the impact of this significant increase in rates bills over three years, meaning local shops are facing rising bills for the foreseeable future while other costs rise and trading conditions are at their toughest for many years, the ACS advised.
“Local shops will feel neglected and dismissed by this Government today…”
In response to today’s news, ACS chief executive, James Lowman (left), said: “Local shops will feel neglected and dismissed by this Government today as they’re passed over for additional support.
”For those facing rates increases in April of thousands of pounds, difficult decisions will have to be made about investment, employment opportunities and the services that are provided to customers.
“The Chancellor has a chance to make this right and extend business rates support in the Spring Statement to all retail, hospitality and leisure businesses. Without additional support, jobs will be lost, inflation will rise as retailers look to claw back margin, and investment will be put on hold.”
Since the Budget, the ACS has campaigned for further support for local shops on rates and has written to ministers outlining the importance of the convenience sector to both local communities and the UK economy.
The ACS Community Barometer survey of UK consumers has shown consistently over the last decade that people see convenience stores, Post Offices and pharmacies as the three most essential services in their community.
”This is a poor decision based on politics rather than what’s good for the local economy…”
Also commenting on the decision, Andrew Goodacre (right), CEO of the British Independent Retailers Associaiton (Bira), said: “This is a poor decision based on politics rather than what is good for the local economy.
“The Chancellor has not listened. She says that ‘we need pubs and high streets to thrive’. If she really believed and understood that comment, then we would be seeing similar support for the rest of the high streets and not just a chosen few businesses - many of which are not even on high streets.”
Goodacre said promises of yet another high streets strategy were “empty words” for the thousands of independent retailers facing sharp rises in their rates bills over the next three years.
“The Treasury states that pubs need support having lost 7,000 since 2010,” he said. “We’ve lost 17,000 independent shops in 2024 and are expecting a similar number when the figures are announced for 2025.”
Goodacre went on to describe the package as “yet another half-baked u-turn” that benefits pubs whilst small retailers are “being flushed down the u-bend.”
Meanwhile, Michelle Ovens CBE, CEO and founder of Small Business Britain, said: “We look forward to supporting the work of the newly announced High Street Strategy to ensure retail, leisure and hospitality businesses can thrive. Given the crucial role these sectors play at the heart of local communities, it’s vital small businesses are given as much support as possible and that we see swift action taken to address existing issues.
“The long-overdue work to reform the business rates system, which the Government has already committed to and reaffirmed today, will be especially key.”
You can now secure your tickets to the Convenience Awards 2026!
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