Spring Statement

ACS’s plan for Chancellor to support local shops

Trade body urges government to scrap its high fat, salt and sugar regulations and insteadcrack down on the illicit alcohol and tobacco markets.

The Association of Convenience Stores is calling on the government to support local shops in the Spring Statement later this month.

The call comes amid rising costs and the looming reintroduction of business rates bills.

The trade body is recommending that the Treasury, at a minimum, should continue the existing business rate relief of 66% for retail businesses for another 12 months to April 2023.

In addition, ACS has welcomed the government’s consultation on the introduction of an online sales tax to rebalance the contribution of online and bricks and mortar businesses. However, it says universal sales taxes should not be seen as a viable replacement for the business rates system.

ACS also called on the government to rethink the planned increase in employer national insurance contributions to help retailers cope with rising costs.

The trade body has called on the government to scrap its upcoming high fat, salt and sugar regulations and instead invest the cost of enforcement in cracking down on the illicit alcohol and tobacco markets. Additional measures recommended by the ACS, include:

● Freeze business rates multipliersfor the financial year 2023/24;

● Freeze alcohol and tobacco duties to avoid driving consumers to the black market;

● Freeze fuel duty to help consumers and businesses with the cost of getting around;

● Remove VAT from deposit return scheme deposits and encourage investment in reverse vending machines through rates exemptions and permitted development rights;

● Give the Low Pay Commission the freedom to set minimum and living wage rates independently of political targets after the twothirds of median earnings target has been reached in 2024.