We’re calling on retailers facing huge hikes in their energy bills to write to their MP, outlining the need for urgent action from Government.
Retailers can write to their MPs by putting their store postcode into our online tool here: ACS.org.uk/campaigns
Recently, ACS wrote to the Chancellor, calling on the government to take emergency action to deal with the spiralling cost of energy which will cost convenience stores at least £2.5bn this year. For an average small convenience store at around 1,000sq ft, energy costs have skyrocketed to over £45,000 a year, more than doubling for many retailers that have renewed their contracts in recent months. For larger stores around 3000 sq ft, these costs can be in excess of £100,000 a year.
ACS is calling for urgent action to help retailers keep the lights on this winter, urging the Government to introduce a £570m rescue package made up of the following interventions:
- Introduce a price cap on electricity for small businesses in line with the cap that is already in place in the domestic market (set for October 2022 at 52p per kWh for electricity). This should be applicable to all businesses that meet any of the criteria set out in Ofgem’s microbusiness definition, which are: a) fewer than 10 full time equivalent employees, b) electricity usage of less than 100,000 kWh per year, c) gas usage of less than 293,000 kWh per year, d) annual turnover of less than £1.7m per year.
- Scrap business rates bills for all convenience stores from 1st October until the end of the financial year. The Government is currently supporting retailers through a 50% reduction in their business rates bill through to the end of the 2022/23 financial year, but we are calling for further action to increase that relief to 100%.
- Freeze the business rates multipliers in 2023/24. The annual increase in the business rates multiplier is determined by the September rate of CPI (unless there is Government intervention). Currently, the September CPI rate is on track to reach 10%, resulting in a massive increase in rates bills next year. We are calling on the Government to continue to freeze the business rates multiplier, as they have since 2020.
