ACS

24th March 2010

Local Shops React to the Budget

ACS (the Association of Convenience Stores) has reacted to the Budget expressing disappointment at the action on business rates and yet more increases in duty on alcohol and tobacco products.

ACS Chief Executive James Lowman: “Action on business rates is absolutely key to helping the recovery in high streets throughout the country but the proposal to extend small business rate relief will not go far enough. Many local shops operate from premises that are well above the thresholds that entitle them to the benefit the Chancellor has announced.

“He should have gone further to make the rate relief automatic for all those entitled and to increase the thresholds to ensure that more local shops would benefit.

Mr Lowman also commented on alcohol and tobacco duty: “Every penny increase in duty on alcohol and tobacco harms local shops and drives more people into the illegal black market.

“The World Health Organization acknowledges that high taxation policies like that pursued in the UK will lead to over half of the tobacco consumed here being obtained illegally and non-duty paid by the end of the decade. This means a major loss of income to the exchequer and a threat to thousands of legitimate businesses; it also means that objectives to reduce smoking in the population will be undermined. It is time for a full debate on the implications of the constant tobacco tax grab.
 

Contacts:

Shane Brennan Public Affairs Director
01252 515001 07921 372978
Chris Noice Communications Co-Ordinator
01252 533013
Notes to Editors

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.

2. The Budget announces that the Government will fund a temporary increase in the level of small business rate relief in England, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October 2010. Small businesses that benefit from the rate relief taper (rateable values up to £12,000) will receive significant reductions. Business rate relief http://www.hm-treasury.gov.uk/d/budget2010_pressnotice1.pdf

3. Tobacco duty rates will increase by 1 per cent above inflation from today and by 2 per cent above inflation for the next four years. Cider duty rates will increase by 10 per cent above inflation. Other alcohol duty rates will increase by 2 per cent above inflation as announced at Budget 2008. In addition, all alcohol duty rates will increase by 2 per cent above inflation for two further years, until 2014-15.