Rachel Reeves today made history as the first female Chancellor to present a Budget, delivering the first by a Labour government since 2010.
She announced a range of measures that directly affect the convenience retailer, along with decisions that will impact the wider country.
On top of the earlier announcement of the rise of 6.7% to the national living wage, of most interest will be news that the rate of business relief available to stores – which was due to end next spring – will continue through to 2025/26, at 40%.
A feared, a rise in National Insurance Contributions (NICs) for employers will rise to 15% from April 2025. However, the drop in the threshold at which businesses start paying it is large - falling from £9,100 to £5,000 towill raise £25bn, Reeves says.
In addition, Labour is setting aside £1.8m to compensate victims of the Post Office Horizon scandal. “A redress that is long over due for the pain and injustice that they have suffered,” said Reeves.
When it came to changes that will impact shoppers’ pockets, a fuel levy rise for 2025 has been ruled out, while increases in taxes on non-draft alcohol will be introduced in February. The soft drinks levy will also increase. Perhaps most significantly, the vaping industry will see a levy on liquids, to be introduced from October.
Further measures that will affect employers spanned paternity/maternity leave, bullying in the workplace and new rules around unfair dismissal.
Ahead of the budget , Reeves revealed that the National Living Wage (NLW) will increase to £12.21, representing a rise of 6.7%. For young workers aged 18 to 20, the NLW will rise by £1.40 per hour to £10, marking the largest increase on record. The Association of Convenience Stores (ACS) has warned of the potential negative impacts these wage increases could have on c-stores.
Convenience Store will bring reaction and further analysis to the above over coming days.
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