Autumn budget is ‘double-edged sword’ for independent retailers

The federation, which represents thousands of independent convenience retailers and newsagents across the UK, welcomed the 50% discount on business rates and the scrapping of the planned increase on fuel duty.

But it claimed the increase in the national minimum wage from £8.91 to £9.50 an hour would have a “serious detrimental effect” on retailers’ ability to employ and retain staff.

NFRN national president Narinder Randhawa said: “In an ideal world, we would all like to pay our staff more, and we can understand the chancellor’s desire to help people at the lower end of the pay scale.

“But the headline increase in the wage rate does not include the increase in National Insurance and pension contributions, as well as the forthcoming social care levy, that employers also have to pay.

“Rather than boosting many shopworkers’ incomes, the increase in the minimum wage will have the opposite effect of threatening jobs in the sector.

“Independent retailers have already been hit hard by the Covid pandemic, with many having to reduce staff levels and hours and take on more of the work themselves.

“This increase to the national minimum wage and the inevitable knock-on effects will only make matters worse.”

Randhawa added: “With petrol and diesel prices at an all-time high, the cancellation of a planned increase in fuel duty will come as a relief to those retailers who provide home delivery services – something that has increased markedly since the start of the Covid pandemic.

“While we broadly welcome the decision to freeze business rates and offer a 50% discount for one year, we will continue to push for long-term reforms to make the system fairer for the independent retail sector.

“Newsagents and convenience store owners have kept the UK going during all the hardship of the last two years.

“Now is the time for the government to help us, not turn its back.”