ACS (the Association of Convenience Stores) has responded to the Chancellor’s Budget, welcoming changes to alcohol duty rates.
Alcohol Duty: Government has announced the scrapping of the alcohol duty escalator; a freeze on duty for ordinary cider and spirits; and a cut of 1p per pint in beer duty.
ACS Chief Executive James Lowman said: “We welcome the scrapping of the alcohol duty escalator and the decision to reduce beer duty by 1p, which will benefit consumers and reduce some of the pressure on local shops losing trade to the illegal market. However, there remains a significant illegal market in alcohol products, and we will continue to press for more focus on catching illegal sellers and tougher penalties once they are caught.”
The duty rate changes are as follows:
- Alcohol duty escalator scrapped; taxes to rise in line with inflation except for spirits, where it is frozen
- Duty on ordinary cider frozen
- Beer duty cut by 1p a pint
Investment: ACS has commented on plans to double the Annual Investment Allowance to £500,000 from April 2014 until the end of 2015.
ACS Chief Executive James Lowman said: “This budget builds on strong existing announcements on reducing national insurance contributions and business rate bills for local shops. that will come into force on the 6th April.
“The proposed increase in the threshold for the annual investment allowance is a further incentive to business to invest. We know that over a quarter of independent shop owners currently have plans to invest in their shop and this measure will help them to do so.”
Energy: In the Budget, Government has welcomed announcements from the majority of suppliers to end rollover contracts for small businesses.
ACS Chief Executive James Lowman said: “An end to rollover contracts is a significant step in ensuring a fairer energy market for small businesses, but there is still more to be done on backbilling and regulation of brokers to ensure that they are not taken advantage of by suppliers. We will continue to lead the campaign for a fair energy market.”
