BRITAIN’S corner shops and family bakeries face closure because of Chancellor Rachel Reeves’ Budget, their trade body said yesterday.
The Association of Convenience Stores said that her business rates overhaul provides “nowhere near enough support” to offset rising costs.
A typical convenience store with £30,000 rateable value will see its annual bill rise from £8,982 to £11,460 with the removal of 40 per cent relief that kept many afloat during and after the pandemic.
ACS boss James Lowman called the measure a “major disappointment”.
He said the absence of more business rate help “will affect investment and influence difficult decisions on staffing and overall viability”.
Meanwhile, The Craft Bakers Association said family-run bakeries were being “squeezed” by wage hikes and facing an “impossible cost burden”.
It follows the decision to increase the National Living Wage for over-21s by 4.1 per cent to £12.71 an hour, and the minimum hourly rate for 18 to 20-year-olds by 8.5 per cent an hour to £10.85.
A CBA survey showed that almost half of all bakeries, hit by surging wage and National Insurance bills in April, fear they could go under within the next year — and 28 per cent are considering cutting hours or jobs.
CBA boss Karen Dear said: “Bakeries cannot keep putting up prices, customers are already stretched.
“Without real help, we will see more bakery closures, more job losses, and more empty shops.”
BANK BAILOUT
BRITAIN’S two biggest banks have stepped in with a £12billion post-Budget rescue package to help people and businesses.
HSBC UK is fronting £11billion, including £5billion of extra lending for small firms, boosting cashback for first-time buyers from £700 to £2,000 and creating 1,000 roles.
Lloyds Group is slashing the minimum income needed for a first-time buyer scheme and raising how much they can borrow.
FOOD BILL FEAR
FOOD bills could rise after a last-minute Budget U-turn hit large supermarkets with a business rates “surtax”.
Under the plans, commercial properties valued at £500,000 or more will pay a higher rate to fund a permanent discount for smaller retail, leisure and hospitality firms.
Marks & Spencer had earlier said the surtax proposals would “encourage retailers to close larger high street stores”.
