ACS details support needed for local shops ahead of mini-budget

ACS has called on the government to introduce a targeted package of measures to support the UK’s 48,000+ local shops.

Ahead of the planned fiscal event, or "mini-Budget", on Friday (23), ACS has called introducing a small business energy cap that reflects the support being provided to domestic consumers.

ACS is also demanding to extend the 100 per cent business rate relief for the retail sector through to the end of the 2022-23 financial year, freeze the business rates multipliers in 2023 and confirm plans for a transitional rate relief scheme to mitigate the impact of rising rates bills as a result of the latest revaluation.

“Immediate support on energy bills this winter is crucial to the survival of thousands of convenience stores," said CEO James Lowman. "The most straightforward way of delivering that support is through a cap that reflects the support being provided to consumers. The Government must act as soon as possible to announce the details of what it intends to do, as retailers are making decisions right now about their future viability.

“Beyond energy support, we are calling on the Government to help retailers with the cost of business rates. With the rates revaluation looming, many local shops will be facing a significant hike in their business rates bills, which during this uncertain time is likely to have a damaging impact on future investment plans. If this Government is serious about driving growth throughout the economy, incentivising small entrepreneurs to invest in their communities must be front and centre.”

Consumer polling conducted as part of ACS’s Community Barometer report shows the majority of consumers (68 per cent) would like to see investment targeted to their immediate local area, compared to 32 per cent who want to see investment in their nearest town centre. Support for existing businesses was also seen as the most popular form of investment by consumers.

Friday’s fiscal event will be the first significant set piece of the Liz Truss government, coming at a time when retailers are not just facing an energy crisis, but also attempting to prepare for significant, expensive legislation change. In less than two weeks, new rules will come into force that ban the placement of HFSS (high fat, salt, sugar) products near store entrances, till points and at the end of aisles. The rules, which are set to affect thousands of convenience stores, have been frequently criticised as being expensive to implement whilst being unproven in their effectiveness at reducing obesity.

“The new Prime Minister and Chancellor have talked about deregulation and cutting the cost of doing business. They could start by halting the incoming restrictions on where shops can display certain products, saving retailers including thousands of small businesses the costs of reconfiguring their stores,” said Lowman.