Proposed PRS Tariffs Could Cost Convenience Sector Over £1.2m

ACS (the Association of Convenience Stores) has responded to the PRS for Music consultation on the simplification of the PRS retail tariff, raising concerns that the changes will hit the smallest shops the hardest.

Under the proposals, any business that previously had a reduced rate for having a small audible area (by broadcasting through a single radio or television) will incur a £51.50 increase to their rates each year.

In the submission, ACS raises concerns that the convenience sector will see its tariffs increase while some of the largest stores (especially those between 3000 sq m and 4000 sq m, and between 5000 sq m and 7000 sq m) will see a reduction in their tariffs. The cost to the convenience sector of the new tariffs has been estimated at £1.26m, with stores under 100 sq m bearing the majority of the cost increases.

ACS chief executive James Lowman said: “The proposed changes from PRS for Music will disproportionately affect smaller retailers. We do not believe that removing the reduced rate for the smallest retailers is appropriate, especially at a time when all convenience stores are experiencing cost increases in many other areas of their businesses. PRS’ planned tariffs will cut costs for many larger stores whilst squeezing more from small stores, and this is something that needs to be urgently addressed.”

ACS has called on PRS for Music to consider the following measures to minimise the impact on small retailers:

  • Reinstate the reduced rate for stores with a small audible area
  • Maintain the five bands between 0-500 sq m instead of moving to three larger bands
  • Graduate the cost increases between bands more fairly, as currently stores between 200-500 sq m are set to see a fee increase of almost double that of stores between 500 – 1250 sq m

The full submission is available in the lobbying section of the ACS website.

This entry was posted by Chris on Mon, 21/11/2016 - 07:35