Chancellor John Healey’s autumn Budget announcement is set to be unveiled on Wednesday next week (28 October), and it comes at a time when the cost pressures on those in the retail industry seem at tipping point.
Increased employment costs, seemingly endless legislation updates to key categories and higher energy bills have all been increasingly affecting stores and the people who run them in recent months, with the ever-contentious issue of business rates top of many retailers’ wish lists for change next Wednesday.
To research these concerns and more, Convenience Store spoke to five retailers ahead of the announcement, to find out what they hoped to her in the Budget next week.
Retail crime
Retailer and former police officer, Priyesh Vekaria, who runs a One Stop store in Salford near Manchester, said he hoped for an improved response to the issue of retail crime from the Government.
He said: “My biggest hope for the Budget would be a meaningful commitment to tackling retail crime and the illicit trade, backed by dedicated funding for frontline policing, Trading Standards and stronger enforcement.
“Independent retailers invest heavily in protecting their colleagues, customers and communities, yet continue to face the growing pressures of criminality and unfair competition from the illicit market.
“We need more than promises. We need coordinated, adequately resourced enforcement that protects legitimate businesses, safeguards our communities and restores confidence in our high streets.”
Business rates
Long-time Convenience Store contributor and independent retailer Bobby Singh, from Wakefield, noted that the thorny issue of business rates must be addressed by the Government if the role of the retailer in communities is to survive.
Bobby said: “For me, business rates would be a big one, alongside some real support for independent retailers with rising costs. We’re the heart of our communities, but we need the right support to keep investing, serving and growing.”
Northamptonshire retailer and postmaster, Vidur Pandya, agreed with Bobby, and said: “Business rates is definitely the one, as we need level ground with online retailers who don’t pay the same rate.
“But I’d also highlight that fuel duty needs to be frozen and the Government should potentially look at reducing it, as that’s one tax that gets passed on very quickly causing food inflation.”
VAT relief
Charlotte Williams, who has run a small market town store in Winsford, near Chester for the last five years, pointed to VAT relief when it came to her own Budget wishlist: “My biggest hope would be some relief on VAT for small businesses. Even a six-month payment holiday would give independent retailers some much-needed breathing space, although realistically I can’t see that happening.
“Running a small business is becoming increasingly expensive, and sometimes it feels like you’re working incredibly hard just to keep up with the bills. I’d love to see a budget that genuinely recognises the pressures facing independent retailers and gives us a little more support.”
Energy costs
Finally, Benedict Selvaratnam, owner of Freshfields Market in Croydon, said his energy bills were something he’d recently been shocked by, and hoped the Government might offer some relief: “My electricity renewal came in recently, and they said the standing charge is going up to £2.50 a day. I remember when it used to be 70p or a pound.
“Apparently the Government wants to raise funds to build nuclear power stations and they’re expecting the utility companies to collect a portion of the bill to fund those. They’re just piling on more and more expense on small businesses and if you look at the data, it’s glaring.”
Benedict added that he also feared for the nation’s high streets if things continued in the way they have been: “We cannot keep putting this pressure on. I thought the high street was stabilising a little bit, but with these additional costs coming in. I just don’t see how it’s going to.
“It’s pushing more people to buy online and you’ll find less choice on the high street. It’ll just be the same brands, with high streets up and down the country all looking the same.”
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