ACS calls for ‘low-risk’ designation for c-stores within new subsidy regime

ACS has called for designating convenience stores as ‘low risk’ within the new UK subsidy control regime.

In its submissions to the Taskforce on Innovation, Growth and Regulatory Reform (TIGRR) and a Department for Business, Energy and Industrial Strategy consultation on establishing new rules around government subsidies, the trade body has noted that convenience retailers do not materially affect international trade, or export goods.

The ‘low-risk’ designation would reflect this and allow reduced administrative requirements and the removal of limits on reliefs for convenience retailers, it added.

Existing state aid rules require retailers to complete state aid declarations when receiving business rates relief or other financial support and prevent access to financial support when a €200,000 over three fiscal year limit is reached.

“Business rates relief is the main subsidy regime for the convenience sector and the existing state aid regime limits the benefits of business rates relief policies – particularly for multiple convenience retailers,” James Lowman, ACS chief executive, said.

Launched following the end of the transition period for leaving the European Union on 31 December, the consultation by the BEIS department looks at establishing new UK subsidy control rules, to replace existing EU-derived state aid law.

The government has formed the new taskforce in February to scope out and propose options for how the UK Government could reform regulations previously decided at an EU-level.

In the submission to TIGRR, ACS has outlines a number of recommendations including:

• Enable a digital identity system fit for the UK’s growing digital economy.
• Provide funding to enable investment in electric vehicle infrastructure on existing petrol forecourts and other on the go locations, including connections to the National Grid.
• Empower the Regulatory Policy Committee to achieve ambitious Business Impact Targets.
• Designate convenience stores as ‘low risk’ within the new UK subsidy control regime.
• Recognise Primary Authority as a successful approach to regulatory compliance and enforcement.
• Publish DEFRA’s review of rural proofing and embed rural impact assessments during all policy development.
• Develop online tools for small businesses to easily interpret regulatory requirements.
• Exempt small shops under 3,000 sq. ft from product location restrictions, including symbol group retailers that are widely recognised as small businesses.
• Design a deposit return scheme around strategically located return points in line with consumer demand, and ensure cost neutrality for retailers providing these facilities.

The taskforce will report directly to the prime minister and aims to improve how policy is made and support the post-pandemic economic recovery.

“Local shops play an essential role in the areas that they serve and to the overall economy and it is vital that the government recognises the continued value and importance of the local shop,” Lowman said.

“The recommendations in our submission would make a real and meaningful difference to convenience store operators by enabling investment and encouraging business development and growth.”