Tax
Small retailers are also affected by increases in tax which reduce already narrow margins. In the 2007 Budget Gordon Brown announced that over the next three years the small business corporation tax rate would be increased from 19% to 22%, while the rate for larger businesses would be reduced. This move will harm the competitiveness of smaller retailers and ACS calls for a reduction in the tax burden to allow for increased investment in stores which could be stifled by this increase.
In recent years there have also been significant increases in alcohol, tobacco and fuel duty. The increases in duty on alcohol and tobacco fuel the bootlegging of these products which harm both independent retailers and the Treasury, while increases in petrol duty further harms forecourt retailers. ACS continues to push for a harmonisation of duty rates across the EU to reduce the smuggling of alcohol and tobacco, and has urged the Government to avoid further increasing the duty on these products.