ACS (the Association of Convenience Stores) has welcomed the Chancellor’s measures to stimulate growth and cut taxes in the short term, calling for longer term support on energy costs.
Measures announced by Chancellor Kwasi Kwarteng MP in today’s mini-Budget include:
- 40 new Investment Zones, providing targeted tax reliefs for new businesses
- The April 2022 rise in both employee and employer National Insurance rates will be reversed
- Corporation tax rates will be frozen at 19%
- The Annual Investment Allowance will be permanently set at £1m from April 2023
- Beer, cider, wine and spirit duties will be frozen at their current levels from February 2023
- Reducing the basic rate of income tax to 19% from April 2023
ACS chief executive James Lowman said: “We welcome that the government’s plan aims to stimulate growth and incentivise investment by businesses. In the last 12 months local shops have invested £605million in improving services, making their businesses more sustainable, and creating secure local jobs.”
Earlier this week, the Government announced the details of an Energy Bill Relief Scheme for businesses, which will benefit anyone with a fixed contract agreed from April 2022, as well as those on variable or deemed contracts.
The scheme will provide discounts to businesses on their energy bills through a Government supported wholesale price. The actual level of support provided to retailers will depend on their current kWh rate, with the intention of the scheme to be equitable to consumer support, which will see kWh rates of around 35p for electricity from October. However, the scheme will only last an initial six months, with a review after three months.
Mr Lowman continued: “The biggest issue facing local shops in recent months has been the cost of energy. The support being provided in the coming six months will act as a lifeline for thousands of businesses, but the Government must continue to support local shops in 2023, especially the most vulnerable facing difficult decisions in the Spring.”
A full briefing on the mini-budget is available to ACS members. Check your inbox for more details.
