ACS calls on chancellor to provide business rates and VAT support

The statement, due to be given by Sunak tomorrow (8 July) is not intended to be a major fiscal event, but the ACS believes there are still measures that the government can introduce now that would support convenience stores in the coming months.

Measures recommended by ACS in a submission to the treasury include: extend the 100% business rates discount beyond 2020/21 and taper the reintroduction of rates bills, extend the National Living Wage target of 2/3 of median earnings beyond 2024, reduce employer National Insurance contributions, and expand the Retail Grant Fund threshold beyond £51,000 rateable value.

ACS chief executive, James Lowman, said: “The support provided to thousands of local shops by the government throughout the pandemic has ensured that they can continue trading, keep colleagues employed and focus on serving customers safely. As we move into the next phase of recovery, the chancellor has an opportunity to help local shops and other small businesses with additional certainty about their longer-term costs, which in turn will stimulate investment and benefit communities.”

The ACSwelcomed the potential removal of VAT on some products, but has called on the chancellor to provide clarity on which food and drink products could have a zero VAT rate when sold in convenience stores.

Lowman added: “Any changes to VAT, whether an overall cut in the rate of VAT or specific changes to which categories and products are eligible for a zero rate of VAT, must be communicated clearly to businesses and be introduced with a reasonable notice period to mitigate the operational challenges associated with implementing such a change.”