Business rates bills have risen by over 70% and Employer National Insurance costs have almost doubled for local shops over the past two years, the Association of Convenience Stores (ACS) said as it called on the chancellor to tackle the cost of trading in the government’s Budget.
As well as these costs, ACS said retailers have had “to deal with year on year increases in the National Living Wage, expensive changes to employment rights and volatile energy costs” which means “local shops are being left with very little room to breathe”.
In its submission to chancellor John Healey ahead of the Budget on 28 October, the business group called on the government to take action including:
- Reduce 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 £18,000 rateable value.
- Use the revenue that will be generated from the Vaping Products Levy coming into force in October to enforce against those that sell illicit products and don’t follow the rules.
- 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.”