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A single-use vape ban, a hike in employee wages and no more volume promotions on High in Fat, Sugar or Salt (HFSS) foods. That’s just a few legislative hurdles independent retailers face in 2025. But what’s the real damage behind shop doors when the government imposes several legislative changes within a year?

“It’s like another arrow has just gone and hit me in the heart” is how Coventry-based retailer Aman Uppal feels when the government announces new legislation. The owner of One Stop Mount Nod - who employs three full-time and five part-time staff - says being a small business owner is challenging these days as new legislation is coming in “thick and fast”.

“Retailers are a resilient bunch, but every time you hear of these changes you think ‘oh no’ not another one. The immediate reaction as a retailer is how do we deal with this and you have to put some sort of plan into action,” he shares.

Financial strain from new legislation remains a concern for Aman, who plans to work extra hours to cover the rising costs. “It’s not like the increase in duty on cigarettes, customers know about that, it’s factored into the price and it’s there for customers to see. With these legislative changes, it’s a case of the cost won’t be seen by the consumer and they really affect our running and bottom line.”

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However, the financial impact is only part of the story. Aman explains the administrative burden of complying with new legislation can be equally as taxing. “The administrative side of legislation is now so much a part of our job as small business owners that we’re not even thinking of it as an extra job. We have to do it as part of our daily, weekly or monthly activities. We know these things are happening, so we’ve got to plan ahead,” he adds.

Implementing these changes demands time and effort that could other wise be spent on improving the business, according to Neil Godhania. The Premier retailer says staying compliant and future-proofing his store is a top priority. “Legislative changes definitely have an impact on our day-to-day ops, as we have to balance compliance with running the business efficiently,” explains Neil. “The upcoming vape ban, for example, means we’re spending time managing stock, ensuring we clear out disposable vapes in line with regulations, and educating customers about alternatives.”

The Association of Convenience Stores (ACS) stresses that the government “don’t seem to fully understand the cumulative effect of all the different regulations they are imposing on retailers”.

In the Autumn Budget, the Chancellor announced that not only will the National Living Wage increase but younger employees (16-20 years old) will receive the largest rise on record.

While it’s easy to cheer for higher wages, it also means businesses are left footing the bill. Some businesses will be able to “absorb the costs” but some will have to endure a series of changes to keep trading, explains Chris Noice, communications director at the ACS. “This could involve reducing staff hours and the admin involved with that, it could be refitting the store so that there is more automation or self-service throughout, or it could mean retailers putting in more working hours in the business themselves,” he says.

Aman says independent owners are working more to cover those costs. “We might end up changing the hours our employees work, we might close early,” he says. “The businesses will go on, the businesses will always run, but we will have to make up prices. But that retailer will have to decide what that is for themselves in their store based on their current circumstances.”

The wage increase is taking time away from other areas of growth and development, Neil points out. “We’re looking at how to absorb the additional costs while maintaining competitive pricing and keeping service levels high. It means reviewing expenses, considering potential efficiency improvements, developing the stores and possibly adjusting staff hours,” he adds.

What dates should I put in my 2025 calendar?

1 February: Alcohol duty uprated

Alcohol Duty rates for all non-draught products will increase in line with Retail Price Index inflation. Retailers will have to ensure that their prices are accurate on their Epos systems.

31 March: “Simpler Recycling” regulations

Businesses with ten or more full-time employees must arrange separate collections of food waste, paper and cardboard (combined) and other dry recycling (glass, plastic, and metals, which can also be combined).

1 April: Business rates increase

Business rates relief for the retail, hospitality and leisure sectors has been extended, but the discount has reduced from 75% to 40%. Retailers need to ensure that they are paying the correct business rates, which could leave them out of pocket.

6 April: Wages and National Insurance

The National Living Wage (21 and over) will rise to £12.21 whilst the 18-20 year old rate will increase to £10.00.

Employer National Insurance Contributions (NIC) will increase from 13.8% to 15%. The threshold when employers become liable to pay NICs on employees’ earnings will reduce from £9,100 to £5,000 a year.

For small businesses, the government is increasing its Employment Allowance scheme from £5,000 to £10,000. This allows elgible employers to reduce their annual NICs.

Retailers will need to ensure they are paying the correct rates and should find out if they qualify for the Employment Allowance respite. 

1 June: Single-use vape ban

Retailers will no longer be able to sell single-use vapes in the UK from this date. The only vaping products available for sale legally in the UK must be refillable and rechargeable. The ban means retailers will need to check their vape range is compliant.

1 October:  Volume promotions on HFSS products ban

Retailers will no longer be allowed to display promotions - such as buy one get one free or multibuys - that encourage the purchase of HFSS products in large quantities.

While retailers focus their time and resources on new legislation, Noice suggests that investment could be reconsidered as a result of the burden of red tape. Emphasisng that service provision and wider customer service could also “suffer”.

“If retailers and their colleagues are expected to go through additional processes in the store (the most extreme example being manual returns of containers through a deposit return system), that affects their ability to provide other services that are also time intensive. Customers don’t want to be queuing up for 5-10 minutes, they want convenience, and retailers sometimes have to make sacrifices to continue being able to deliver that experience,” Noice adds.

Meanwhile, the British Independent Retailers Association (BIRA) has asked for the regulators - across the various government departments - to coordinate the changes so that there is not too much happening at once. “It is quite easy for a small business to feel overwhelmed when there are lots of changes impacting the business at the same time,” explains Andrew Goodacre, chief executive of BIRA.

Praising the government for its efforts in widely promoting legislative changes, Goodacre says that the details are not always “abundantly clear” and often missed by the smaller business owner who is busy just “running the shop”.

“Changing the rules is always time-consuming and at times confusing for the indie retailer. The challenge for the smaller business owner is finding the right information,” Goodacre adds. 

If you’re struggling to find the right information on legislation changes. What support is out there?

It’s easy to feel overwhelmed. That’s why trade associations such as the Association of Convenience StoresBritish Independent Retailers Association and the Federation of Small Businesses are available to support you. 

  • Plan ahead and work out exactly what you need to do 
  • Join trade associations
  • Ask trade associations or retail peers questions if you’re unsure
  • Educate your team as well as yourself on upcoming changes
  • Use trade association resources such as the Association of Convenience Store’s ‘Assured Advice