Retailers are feeling let down the Labour Government and fear it will be harder to succeed in 2025.
A survey of 1,000 retailers, carried out by JTI, found that 82% of respondents feel the Labour Government has broken its promise to support small businesses, citing rising business rates, an increase in National Insurance contributions, the proposed generational smoking ban and minimum wage increases as the main reasons for their discontent.
The survey also found that 70% of retailers are feeling “disillusioned” by the actions of the Labour Government towards small businesses since they came into power in July 2024, and 85% think it will be harder for their business to succeed in 2025 as a result of new laws and policies proposed by the Labour Government.
The Generational Smoking Ban figured highly on retailers’ agendas, with 71% of those surveyed agreeing that the Labour Party has not listened to the views of independent retailers on this topic. More than half (58%) of respondents believe the generational smoking ban would have a negative impact on their store, up 15% from when the same question was asked in September 2024.
Some of the main concerns about the implementation of a generational smoking ban included loss of income through lost tobacco sales (84% of respondents) and a loss of income because of illicit tobacco sales (66%).
Over half (55%) also think the generational smoking ban may lead to them reducing staff numbers, with 31% stating the legislation could impact their opening hours.
Commenting on the survey results, communications director at JTI UK Sarah Connor, said: “These results are a clear indicator of retailers’ disappointment in the government’s actions when it comes to the Tobacco and Vapes Bill. Throughout this process, the views of the very retailers who would be expected to enforce this legislation have not been listened to, leaving many disillusioned with those in power and concerned for their future livelihoods. In fact, as a result of the proposed generational smoking ban and other initiatives, 78% of retailers do not think that the Labour Government has their best interests at heart.”
Warwickshire Budgens retailer Avtar Sidhu said the way retailers have been treated throughout this whole process is a “real shame”.
“We understand the need for tobacco legislation, but I don’t think that the views of retailers have been truly considered at any point when it comes to the proposed generational smoking ban,” he said “This will be really challenging for us to enforce in store and will likely cause more friction and abuse at the tills for me and my staff.”
The rise of Illicit tobacco sales is a growing threat to many retailers, with 87% agreeing that the proposed generational smoking ban would lead to more illicit tobacco activity in their local area.
Nishi Patel, who owns Londis Bexley Park, warned that further measures will only benefit the illicit trade.
“Despite this government claiming to back small businesses, we independent retailers are under more pressure than ever before. My main concern around the proposed generational smoking ban is that it will simply push people towards the illicit market – this will be another blow to the revenues of retailers and lead to more crime in our local area.”
Discussing the threat of illicit tobacco, Connor added: “We welcome the government’s recent funding boost for Trading Standards, but it falls far short of addressing the growing threat of illicit tobacco. Half of the retailers who were surveyed believe the funding will not be enough to reduce illicit tobacco.
“The proposed generational smoking ban will only play into the hands of illegal tobacco operators and will negatively impact on thousands of small convenience businesses across the UK. We urge the government to reconsider its approach and focus on tackling the root causes of the illicit trade rather than implementing a generational smoking ban.”
No comments yet