ACS calls for extension of business rates support  

The Association of Convenience Stores has called on the Chancellor to extend the business rates discount in 2021-22 to avoid spike in operating costs while stores are still dealing with the impact of the pandemic.

In its submission to the Treasury ahead of the 2021 Budget, the ACS recommended a minimum 50 per cent reduction in business rates for 2021-22 to taper the reintroduction of rates.

Chancellor Rishi Sunak had exempted small shops with a rateable value of less than £51,000 from paying business rates for 2020-21 in last year’s budget statement.

The ACS submission noted that almost half of the convenience stores in the sector (42%) would have had to close without the financial support through rate relief, grants and loans provided by the government over the last year.

Despite the sales surge witnessed in the grocery sector during the pandemic, many businesses, especially those operating in city centres and near transport hubs, have struggled to stay afloat in 2020, so increased business rates relief of up to 100% for 2021-22 should be considered for those stores, it added.

“The operational challenges of the pandemic are not yet behind us,” commented James Lowman, ACS chief executive.

“Local shops are still investing in additional services, Covid-secure measures in store, and increased staffing costs to cover absences, so a sudden shock of high business rates costs, especially for those with high rateable values in city centres that have been hit hard over the last year, could be devastating.

“We need the Chancellor to take decisive action to taper the reintroduction of business rates and provide additional relief where it is needed to help those most affected get back on their feet.”

The ACS has also demanded an extension to the deadline for the National Living Wage’s two-third median earnings target beyond 2024 and restoration of the independent setting of ATM interchange fees to secure long-term access to cash. The submission also asked a guarantee for retailers offering cashback without a purchase to receive fair remuneration for the service.

The submission recommends freezing alcohol, tobacco and fuel duty rates, and ensuring that ‘place of retail’ is not a determining factor for alcohol duty rates. It urged more funding to enable investment in electric vehicle infrastructure on existing petrol forecourts.

“The Chancellor has the opportunity to take wide ranging steps to support businesses in the coming year as we hope to recover from the impact of the pandemic. Enabling local shops to plan ahead without the fear of significant cost increases and disruption to their businesses will have a positive impact on the economy, on local jobs, and in the communities where retailers trade,” Lowman added.

The 2021 Budget is due to be delivered by Sunak on 3 March.