ACS

ACS has made a detailed submission to the Chancellor in advance of the budget. Speaking on behalf of 33,000 local shops, ACS has called for action to relieve pressure in the market caused by credit insurance. This is one of the five areas that ACS has identified where the Government should take action to assist local shops in the recession.

Suppliers have become increasingly concerned about their exposure to retailer insolvency, they are being influenced by their credit insurers who are extremely risk averse on retail lending. In the last few months there has been widespread withdrawal of credit insurance, which enables firms to trade with one another without fearing unpaid bills. The recent collapse of large retail businesses has proved to be a harsh lesson for some food companies which did not have the necessary insurance in place.

In addition to action on credit insurance ACS also called upon the Government to assist the local shop sector through;

- Continuing to work with banks to open up credit to businesses
- Postpone the increase in employers NI contributions
- Freeze National Minimum Wage for 2009/10
- Freeze business rates at their current level until financial stability has been regained.