With Budget due to be launched next Wednesday 6th March, ACS (The Association of Convenience Stores) are hoping to see Chancellor Jeremy Hunt provide support for retail and convenience stores by addressing rising costs in business rates, employment, and the cost of providing access to cash. In its submission ahead of Budget, ACS highlighted the importance of providing support to thousands of stores and extending retail, hospitality, and leisure reliefs to protect them from cost uncertainty from business rates in the medium term.
Warnings against inflation rises in National Living Wage rates were also mentioned, emphasising the impact that they’ve already had on businesses. With retailers having to make difficult decisions such as reducing the overall number of paid staff hours and profit margins, ACS has called on the Chancellor to maintain the two-thirds target for the foreseeable future.
Retailers have also struggled to maintain access to cash following the abandonment of high streets and convenience stores by bank branches. Following the reduction of interchange fees, retailers have found themselves removing their free-to-use ATMs or switching to a charging model as they struggle with network running costs. ACS has urged the Chancellor to consider a review of interchange fees so that local communities can continue to rely on a network of ATMs for cash access.
ACS chief executive James Lowman said: “We are hoping to see Chancellor Jeremy Hunt act on the recommendations included in our submission following Budget on Wednesday. With the current cost of living and cost of trading crisis, many convenience stores are seeking stability and will need more support going forward so they can continue to progress and evolve in this fluctuating economy.”
Additional recommendations made in the submission include:
- Raising the threshold for employer National Insurance Contributions
- Considering a new rating methodology to address the imbalance between online and bricks-and-mortar stores
- Freeze alcohol and fuel duties to relieve future inflation
- Provide more funding to enforce against illicit tobacco and vape sellers
- Address the rising cost of accepting card payments
The full submission is available on the ACS website here.
ACS have also released a podcast where Communications Director Chris Noice and Public Affairs Director Edward Woodall review what local shops can expect from Jeremy Hunt next week, and also the ban on disposable vapes. You can listen to the podcast here.
