ACS

In a speech today, David Cameron has proposed tax relief for small shops in recognition of their contribution to local communities.

The leader of the Conservatives confirmed a pledge by the party to increase protection given to small shops from the planning system and extended this by promising to consider the impact that reducing taxation and red tape could have on helping independent shops survive. He spoke as part of an address about the importance of local communities to the Campaign for the Protection of Rural England.

Cameron said the move marks a shift in policy which may have wider applications by taking social, as well as monetary, values into consideration.

He went on to say: “There's something else we're looking at too: the position of small shops. The personal and specialised offer from independent retailers, combined with their tendency to be more involved in community activities, to be plugged into local social networks or to support local suppliers, means that they should be treated differently. They should be considered to compete with larger chains not just on economic terms, such as price or the range of goods or services available, but also on their social value.

"If small independent shops have a greater social value than chains or larger shops, then it makes sense for them to benefit not only from retention and strengthening of the 'needs test' in planning law but also from an advantageous tax and regulatory regime which tips the balance back in their favour against the larger retailers.”

ACS Chief Executive, James Lowman, said: “We are very pleased that the Conservatives have placed emphasis on the value of local shops to the community. We welcome the proposal for reducing the burden of red tape and taxes on local shops and are keen to discuss these in more detail. ACS remains committed to talking to all parties about how local shops can be supported to the benefit of the community.”