The Association of Convenience Stores (ACS) has submitted evidence to the Treasury ahead of the Budget next month, calling on the Chancellor to go as far as possible to support local retailers via the business rates system and back responsible operators by funding more enforcement against illicit trade.
Since the last Budget, convenience stores have had to face increased costs of over £612m through higher business rates bills, the changes to Employer’s National Insurance Contributions, and the impact of higher National Living Wage rates. ACS noted that for thousands of retailers that are making plans for 2026, there is a major question mark over the cost of their rates bills and how that will affect their potential to invest.
The government has committed to introducing a new ‘Retail, Hospitality and Leisure’ multiplier, but the rate of this multiplier is still undetermined. In its submission, ACS has called on the Chancellor to use the full extent of powers available to the government to set the new RHL multiplier at 20p lower than the standard and small business multipliers, effective from April 2026. The trade body warned that anything less than the full 20p reduction would not result in meaningful savings for local shops.
The most recent business rates revaluation is set to take effect next year, with the likelihood that thousands of retailers will be facing an increase in their rateable values as a result. ACS has called on the Chancellor to index the threshold for small business rate relief (currently starting at £12,000 RV) with increases in rateable values, so local shops aren’t unfairly pushed into paying rates.
“There are significant changes coming to the business rates system next year, with retailers bracing for the impact of the revaluation and expecting a reduction in the 40% retail and hospitality relief that has remained in place this year,” said ACS chief executive James Lowman.
“Retailers need certainty about what they’re going to be able to invest in next year, so we urge the Chancellor to ensure that unnecessary hikes in business rates bills don’t get in the way of growth.”
The submission also highlights the significant impact that the illicit trade is having on responsible retailers. Age-restricted products like tobacco, vapes and alcohol all suffer from a widespread illicit market facilitated by rogue sellers that have no fear of intervention from enforcement authorities. ACS has called on the Chancellor to provide additional funding for Trading Standards teams across the country to properly enforce against rogue traders and disrupt the sophisticated supply chains that are bringing dangerous, illegal products into the country.
Lowman continued: “Responsible retailers deserve to be backed by an enforcement regime that acts as an effective deterrent against the sale of illicit and illegal products. Trading Standards and enforcement teams desperately need more funding to be able to put a stop to the rogue traders that are currently operating without fear of reproach.”
NAM Implications:
- Fingers crossed!
- Given its record to date, and the enormity of its other challenges…
- …the government is likely to turn a deaf ear, regrettably,
