ACS

ACS today met with Ian Pearson, Parliamentary Under-Secretary of State for the Department for Business, Enterprise and Regulatory Reform and Economic Secretary to the Treasury, to discuss the support at this time of economic downturn being given to the 33,000 local shops that ACS represents. The meeting came the day after the Government announced a package of measures designed to increase small and medium businesses access to credit, with ACS stressing the need for loan support to be as widely available as possible.

ACS Chief Executive James Lowman said: “It was extremely useful to meet with the Minister today and outline the issues that are really affecting convenience stores along with the measures that could be undertaken that would have a profound impact on shops facing hard times.

“In particular we highlighted the need for action to be taken against the business rates triple whammy that retailers are facing over the next two years. We also highlighted the ongoing issue of annual inflation busting minimum wage increases, which are leading to staff hour reductions as the quickest way to reduce business costs.”

On business rates ACS is advocating;
• A freeze on the current level of business rates to reflect the economy.
• The 2010 rate revaluation to be delayed until the economy regains stability.
• That the implementation of the Business Rate Supplements Bill should be delayed until economic conditions improve.

Other areas raised by ACS included the importance of the implementation of an Ombudsman to oversee a Grocery Suppliers Code of Practice as recommended by the Competition Commission following its two year investigation into the Grocery sector. The importance of retaining town centre first planning policy was also discussed with ACS advocating a strengthened impact test to deter unwarranted out of town development.

Mr. Lowman continued: “Local shops play a vital role at the heart of communities across the country. Independent academic research of consumer needs shows that people want access to a local shop within five minutes walk of their home. To enable retailers to continue to play this central role to people’s access to food and sense of community, retailers must be able to access sufficient credit.”

 Mr Pearson said: “I am very pleased to have met with ACS today and hear about the concerns of local shops at this time of economic downturn. The Government is committed to assisting small shops and believe that this week’s announcements on loan guarantees will go some way to achieving this.”

Contacts:

Shane Brennan Public Affairs Director
01252 515001/ 07921 372 978

Nina Collins Communications Coordinator
01252 515001

Michael Saxton/ Grappa PR
Julie Kirby 020 7602 9222

Notes to editors:

1. ACS is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.

2. Business rates will be increasing in April 2009 based on inflation rates of September 2008 – the peak of inflation. In September inflation was at 5% and in November it was down to 3% this is a figure expected to continue to fall.

3. Rate revaluations take place every five years. The last rate revaluation took place in 2005 based on market on 1 April 2003, the next will take effect in 2010 based on 1 April 2008. Rates bills are made up of the buildings rateable value multiplied by Uniform Business Rate (UBR). The UBR is indexed in line with the RPI which was 4.2% in April 2008. Between April 2003 and 2005 retail sector rents (therefore ratable values) rose by an average by 20.8%. This may translate to a rate increase of 15.9% for all retail and 19.7% for grocery stores, a massive increase in outgoings for businesses especially at this time of economic downturn.

4. In the Pre-Budget Report it was confirmed that the Government will go ahead with their planned Business Rate Supplements Bill. This will give Local Authorities the opportunity to increase business rates by an extra 5% and spend that money on local projects, if they so wish.