The Association of Convenience Stores (ACS) is calling on the government to take action ahead of the Spring budget to overhaul energy support and keep UK stores open throughout 2023.
It said taking action on energy costs is the most pressing priority in the Budget on 15 March, due to the consequences of doing nothing ahead of a coming recession.
The ACS has repeatedly warned the government that there are many convenience stores who simply cannot afford to absorb tens of thousands of pounds of additional costs on energy this year, with some likely to close their doors as a result.
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In the ACS’s Budget submission report, the association highlights that those who agreed to fixed contracts in the second half of 2022 will be facing bills that are triple what they are now from April.
Therefore, the government is being pushed to take a sensible approach to support retailers and consumers through this difficult trading period.
The report says the main areas of support should include better target discounts for the most vulnerable businesses, and putting pressure on energy companies to allow companies to negotiate new contracts to better reflect lower wholesale prices.
Additional recommendations in the Budget submission include recognising good quality employment and tackling and one-sided labour models, freezing fuel duty to support retailers and customers during the cost-of-living crisis, and investing funds in disrupting the illicit tobacco and e-cigarette market, which diverts trade from local shops and results in billions of lost tax receipts.
“The energy support that convenience stores have had from government over the winter has been a lifeline. That lifeline is now being cut, leaving many wondering how they’re going to be able to keep their doors open from April,” ACS chief executive James Lowman said.
He added: “The chancellor must not attempt to play in the margins by pointing to other areas of Government support as a way of making up for the ten-fold reduction in funding for hard working businesses, he must address it directly and overhaul the energy package from April to make sure that those who need the most support get it.”
“There are a number of long-standing issues that the Government has promised to address but has not sufficiently acted upon,” Lowman said.
“Reform of the business rates system remains crucial to ensuring a fairer playing field for high street stores competing with online retailers, recognition of the secure and flexible employment that convenience stores provide will help with stores dealing with a challenging job market, and more funding to drive out the illicit trade in tobacco and e-cigarettes will not only support responsible retailers but also close the gap of billions lost by the Treasury in tax receipts every year.”
The news comes as the Association of Convenience Stores (ACS) has urged the Scottish government to “adopt a consistent approach” to rules on products high in fat, salt or sugar (HFSS) to align with other areas of the UK.
