Talking Retail Grocery and product news for independent retailers
- Alcohol duties, including beer, wine, cider and spirits, will be frozen until 1 August next year
- Employee National Insurance rate cut from 12% to 10% from 6 January 2024
- Local authorities will be able to recover full costs of business planning applications to process applications quicker, or the application fee will be refunded
- Duty rates on hand rolling tobacco will rise by 10% above the existing tobacco duty escalator
- Introducing a legal right for workers to require employers to pay into their existing pension pot
The Autumn Statement follows a Treasury announcement earlier this week about the National Living Wage rate for 2024, which will rise to £11.44 per hour from April and will apply to workers aged 21 and above.
ACS chief executive James Lowman said: “Many of the smallest convenience stores who are already eligible for 100% rates relief so won’t see a material change from these announcements.
“Local retailers will be more concerned about how to absorb the cost of another significant jump in the National Living Wage rate, without any help to offset this huge increase in wage costs, such as reducing the burden of Employer National Insurance Contributions.”
Some wins, and some losses, was how the Federation of Independent Retailers (the Fed) viewed the chancellor’s announcements.
While extending the 75% business rate relief and employers’ National Insurance relief for another year and a freeze on the small business multiplier are positives, the Fed is disappointed by the lack of help with energy costs and tackling retail crime.
National president Muntazir Dipoti said: “We are pleased that the chancellor has taken on board our serious concerns about business rates, but our members are still struggling with extortionate energy bills.
“Our costs are rising all the time, and when you factor in the increase in the minimum wage to £11.44 an hour, some small shops will inevitably have to consider whether their businesses are viable and sustainable.
“It was also disappointing that there was no mention of any increase in public spending, especially on policing, at a time when shoplifting and attacks on shop staff have reached epidemic proportions.”
Commenting on the decision to freeze alcohol duties until next August, Nuno Teles, managing director, Diageo GB, said: “Today we raise a glass to the chancellor and the prime minister, who have listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK.
“Drinkers and pub-goers across the country now have even more reason to celebrate this festive season. Cheers chancellor!”
Ed Baker, managing director at Kingsland Drinks, said: “At Kingsland Drinks, we are relieved that the chancellor has decided to not hamstring the UK wine and spirits sector even more by a further Excise increase.
“The recent 1 August increases are making the UK consumer pay some of the highest alcohol taxes in Europe which are now filtering through to higher pricing for them and lower sales for us; an additional rise would have damaged our industry even further.”
On Alcohol and tobacco duty, James Bielby CEO FWD (Federation of Wholesale Distributors) said: “ FWD members are large alcohol and tobacco excise duty payers, both directly and indirectly.
“We welcome the freeze in alcohol duty until August 1st 2024, this freeze is essential to combat rising inflation and the cost-of-living crisis. However, increases in duty rates, as we will see for hand tolling tobacco, will have implications for the illicit market and its knock-on effects for revenue lost by the Exchequer, undermining public health and legitimate business objectives.
“The government should focus resources on enforcement activity to remove criminals from trading in illicit and non-duty paid goods.”
