Budget 2024

Alongside labour costs, retailers are still beset by high energy costs. At the time of writing, the Temporary Business Energy Support Scheme (TBESS) is due to stop at the end of July.

Vincent Jennings, CEO of CSNA.

Finance Minister to review the living wage due to questions around the methodology of its calculation, particularly the inclusion of “salaries of foreign direct investment companies”.

Ian Allen, Managing Director of SuperValu and Centra, told Retail News he wants “Government to implement plans to assist small businesses that are heavily reliant on people to offset the cost of the proposed living wage”.

He warned that “Retail is a low margin business, and without Government support, many small independent retailers will struggle to deal with the increased costs involved.”

BWG Foods have introduced measures to help their retailers “navigate compliance and streamline employee administration processes”, which include a new people management platform, entitled H2R (Hire 2 Retire), according to John Moane.

“It is imperative that the Government deliver meaningful support and offsetting measures,” said Moane. “For example, a reduction in tax or PRSI related commitments, to help independent retailers adjust to new cost increases and stay compliant with new regulations too. Businesses cannot afford to take the full cost of these new measures at this time and small businesses such as independently owned retail stores are among those most exposed.”

Arnold Dillon proposed the introduction of a PRSI credit for lower-earning workers, relative to increasing weekly labour costs over the next number of years. Retail Ireland also encouraged the Government to ensure that people’s incomes are not overtaken by inflation and to adjust tax bands accordingly.

Ian Allen believes Government should continue the TBESS scheme at least until the end of the year: “The TBESS scheme has been a lifeline for many small businesses and has helped deal with the huge increase in energy costs which have not yet abated.” The SuperValu and Centra MD called on Government to continue energy supports for independent retailers until energy prices decrease in line with “the lower wholesale energy prices in the market at the moment”.

Retailers also want to see measures that will assist them in reaching ambitious climate targets. Vincent Jennings encouraged the implementation of Accelerated Capital Allowances to allow retailers to access energy efficient or environmentally friendly products: “speeding up the ability of the retailer to write down [an investment] against taxes in year one, rather than putting it down over an eightyear period.”

Crime is another subject on retailer submissions for Budget 2024. BWG’s John Moane told Retail News: “While the majority of independent retailers have become far more vigilant around store security, due to an increasing incidence of crime and antisocial behaviour at store level, there are many legal considerations which restrict the extent to which retailers can protect their employees, customers and premises. A stronger Garda presence on the ground would help address these challenges.

It is critical that An Garda Síochána is afforded the appropriate resources in the upcoming Budget to respond to the needs of communities across the country, particularly in areas most affected by criminal behaviour.”

Retail crime, noted Buckley, is interwoven with the attractiveness of town and city centres. “There are various schemes around empty and vacant buildings, living over shops, and so on,” she said. “Government must make sure those schemes operate in a way that brings a positive benefit to businesses in the town centre and doesn't cost them extra. It's about managing red tape and also managing the cost.”

Retail Ireland agree, calling for town regeneration scheme investments to remain “centre stage” and ensure a balanced mix “of retail, housing and transport”.

The complexity of doing business in Ireland has increased radically in recent years, according to retailers we spoke to. The Finance Minister, therefore, should consider a multitude of factors in Budget 2024 to ensure the retail sector remains productive.

“There is an operating environment emerging that increasingly favours larger businesses who have the scale and resources to manage additional costs and navigate challenging legislative frameworks,” explained BWG’s John Moane. “We’re taking proactive steps to ensure that our retailers remain highly competitive. However, it is critically important that the Government gives due consideration to smaller businesses in the upcoming Budget so that the entrepreneurial backbone of our economy is protected into the future.”