The Association of Convenience Stores (ACS) has called on the Government to halt the implementation of the new rules that will restrict the promotion and placement of high fat, salt and sugar (HFSS products in stores. This is one of a number of measures that the trade body suggests is needed to support independent retailers that are already facing rising costs and the looming reintroduction of business rates bills.
In its recommendations submission to the Chancellor ahead of the Spring Statement later this month, the ACS noted that the UK is far from operating at ‘normal’ pre-Covid levels. It suggests that the Treasury, at a minimum, should continue the existing business rate relief of 66% for retail businesses for another 12 months to April 2023.
Meanwhile, the ACS welcomed the Government’s consultation on the introduction of an online sales tax to rebalance the contribution of online and bricks & mortar businesses. However, it stressed that universal sales taxes should not be seen as a viable replacement for the business rates system, as they hit lower margin businesses like local shops the hardest.
The ACS highlighted that local shops are facing a year that will be dominated by rising costs. The rising cost of energy and employing people, and the cost of upcoming regulations are set to add thousands of pounds of expenses for retailers. To lessen the blow on the cost of employment, ACS is calling on the Government to rethink the planned increase in employer national insurance contributions.
On upcoming regulations, the ACS highlighted the £92m implementation cost of the proposed HFSS restrictions in convenience stores, as well the millions of pounds allocated to arm enforcement officers with tape measures to check businesses are compliant from October. The ACS said the Government should scrap the proposals and instead invest the cost of enforcement in cracking down on the illicit alcohol and tobacco markets that cost retailers and the Government billions every year.
“Our recommendations to the Government set out a comprehensive set of measures that would provide real support to local shops at a time when many are considering whether they will still be able to keep the lights on in 12 months’ time,” said ACS Chief Executive James Lowman.
“This is not the time to be heaping additional costs onto retailers – this is the time to create the conditions to ensure that retailers and their colleagues can continue serving their communities and play their part in the UK’s long term recovery from the economic shock of the last two years.”
Additional measures recommended in the ACS submission to the Treasury include:
- Freeze alcohol and tobacco duties to avoid driving consumers to the black market and away from responsible retailers
- Freeze fuel duty to help consumers and businesses with the cost of getting around
- Freeze the business rates multipliers for the financial year 2023/24
- Remove VAT from deposit return scheme deposits and encourage investment in reverse vending machines through rates exemptions and permitted development rights
- Give the Low Pay Commission the freedom to set minimum and living wage rates independently of political targets after the 2/3 median earnings target has been reached in 2024
NAM Implications:
- ‘Scrapping Of HFSS Rules For Retailers’ unlikely to be top of mind for politicians busy with Ukraine issues.
- Ditto re continuation with the existing business rate relief of 66%…
- ‘Additional measures recommended in the ACS submission to the Treasury’
- These rely upon a level of local business expertise not demonstrated by the government so far, unfortunately…
