The ACS has written to Chancellor Rachel Reeves setting out urgent changes that are needed to business rates to protect local shops in the long term, ahead of the autumn budget.
The letter outlines the challenges facing the convenience sector as a result of the increased cost of employment, fierce competition for customers, and the rising burden of business rates.
Taken together, increases in business rates bills, the national living wage and employers’ National Insurance contributions will cost an additional £612m this year alone.
These economic headwinds have resulted in a fall in sales, investment, and jobs across the convenience sector over the past year, according to its 2025 Local Shop Report.
In the letter, ACS points out the importance of local shops to every community across the UK and the benefits of supporting them in the budget.
The trade body has set out a series of measures that are needed to reduce the impact of the upcoming business rates revaluation, in order to incentivise investment and give convenience stores stability.
These are: set the new retail and hospitality rate multiplier at 20p lower than current levels; increase the thresholds for small business rates relief in line with increases in property values; and extend reliefs for stores that invest in their businesses from 12 months to three years. It also advises that CCTV systems are excluded from business rate valuations.
“Our members are currently weathering a storm of increased costs in their businesses, with more to come in April when their rates bills will inevitably go up as a result of the latest revaluation,” said ACS CEO James Lowman.
“We are calling on the Chancellor to make clear that this government supports local shops and recognises their potential as engines of local growth.”
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