Budget swings and roundabouts for independent retailers
செவ்வாய்க்கிழமை 6th ஜனவரி
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The Fed (Federation of Independent Retailers) welcomed the Chancellor’s announcement of a crackdown on illicit traders but is concerned that continuing high costs, including increases in the minimum wage, will harm small businesses.
The Fed’s National President Hetal Patel said: “We have campaigned long and hard for the government to get tough on those who trade in illicit goods and provide more resources for Trading Standards to carry out enforcement.
“I wrote to the Chancellor personally regarding this issue immediately before the Budget, so it is pleasing to see action being promised.
“However, the introduction of licenses to sell tobacco products and vapes will place a further burden on honest shopkeepers. We want to see any scheme implemented flexibly so it doesn’t just cause more red tape for responsible retailers like our members.”
Mr Patel said it was disappointing that the increase in the minimum wage is above inflation. He added: “We called for any increases to be kept in line with inflation. Unfortunately, higher wage bills will lead to more staff having their hours cut or even losing their jobs, with retailers having to take on even more hours themselves.”
On the subject of business rates, the Fed is concerned that although the government is providing reduced small business rates multipliers and additional transitional rates relief that could benefit its members, there is continued uncertainty for small shops, with a revaluation for businesses due in April 2026.
Meanwhile, it was announced in the Budget that alcohol duty rates will rise in line with the Retail Prices Index (RPI) measure of inflation, and tobacco products will rise by RPI plus 2% overall. Also, a 5p cut in fuel duty will be extended until August 2026 before gradually rising to March 2022 levels by March 2027.
