ACS (the Association of Convenience Stores) has written to Chancellor Rachel Reeves ahead of the Autumn Budget, setting out changes that are needed to business rates to help local shops invest in their long-term sustainability.
The letter outlines the challenges currently facing the convenience sector as a result of the increased cost of employment, the rising burden of business rates, and fierce competition for customers. Taken together, increases in business rates bills, National Living Wage increases, and changes to Employers’ National Insurance Contributions will cost an additional £612m this year alone.
Figures from the 2025 Local Shop Report show that jobs, investment and sales in the convenience sector have all been hit over the last year. In the letter, ACS makes the case for the importance of local shops to every community across the UK and the benefits of supporting them in the Budget.
ACS has set out a series of measures that are needed to give local shops stability, reduce the impact of the upcoming business rates revaluation, and incentivise investment. These are:
- Set the new Retail and Hospitality rate multiplier at 20p lower than current levels
- Increase the thresholds for small business rate relief in line with increases in property values
- Extend reliefs for stores that invest in their businesses from 12 months to three years
- Exclude CCTV systems from business rate valuations
ACS chief executive James Lowman commented: “Our members are currently weathering a storm of increased costs in their businesses, with more to come in April when their rates bills will inevitably go up as a result of the latest revaluation. We are calling on the Chancellor to make clear that this Government supports local shops and recognises their potential as engines of local growth.”
NAM Implications:
- While the government is capable of executing U-turns when sufficient pressure is applied…
- …it is unlikely that local convenience can muster sufficient clout among shopper-voters to affect the Chancellor this Autumn.
