Chancellor’s measures not supportive of convenience retail, says analyst

Rodell said: “Whilst the Autumn statement revealed several positive changes for individuals, the measures affecting the convenience retail and forecourt sectors weren’t as supportive as we had hoped and may move to impact customers in the long run.

“An effective 10% rise in the national living wage will benefit staff but along with an increase in tobacco duty other increased costs will create significant added pressure to the bottom line.

“Undoubtedly retailers will pass these costs onto customers to maintain profit margins in the challenging economic environment. This could lead to increases in food prices which may drive up inflation again.

“Many of our clients may wonder whether the business rates relief will impact them so we’ll be looking to provide further clarity on this in the coming weeks.”

The CEO of British Independent Retailers Association Andrew Goodacre, however, expressed both relief and concern.

He said: “We are delighted to see the 75% discount retained and the small business multiplier frozen – it is a lifeline to so many independent retailers.

“However, it was disappointing to see the standard multiplier increased by almost 7%. There are many independent retailers who will now be paying more rates next year, as well as paying 10% more on labour.”

“We are also concerned by the downgraded growth forecast because retail needs consumers to feel better off and have more confidence in spending on the high street. We are not convinced yesterday’s statement will achieve either growth or consumer confidence.”