THE AUTUMN STATEMENT 2022: CAUTIOUS OPTIMISM FOR CONVENIENCE?
“Stability, growth & public services”
These were the watchwords of yesterday’s Autumn Statement by new Chancellor Jeremy Hunt. Bitesize platitudes: digestible but vague.
In my mind, slogans like this are indicative of the perception problem that the government is having, as private citizens and businesses watch, hawk-like for any perceived missteps from the new administration. It feels a little like this government, post-Truss, is like a band trying to put out their ‘difficult second album’ after a change in lineup. The sound will change; that much is inevitable… but so is the negativity that follows. After the unmitigated disaster of the last Truss/Kwarteng budget, the audience will inevitably be hard to please.
In keeping with my somewhat laboured metaphor, the reviews are mixed.
No doubt, many of you will already have read the statement. As such, I don’t want to dive into ludicrous detail; instead, zoom out and view the potential impact of the budget macroscopically as part of the retail/convenience sector.
But first, a sense of perspective –
Things are going to get a little more difficult; for all of us. The amount of money that we will be paying into the national coffers will, as individual citizens, be going up for the most part. This comes as energy and gas costs similarly increase and inflation is forecast to rise to a somewhat disquieting 7.4% in 2023. Even the lucky high-earners amongst us will see the baseline for the 45p tax rate drop to £125,140 – which is news that’s sure to go down like the Hindenburg among some in the business sectors who have, until now, been skirting the line. Lower earners can rest easy for now as their incomes tax rates are being frozen once again; although the government is attempting to slyly make up the shortfall elsewhere, including by revoking the excise duty on previously budget-friendly electric vehicles; creating price-parroty with petrol vehicles. What Jeremy Hunt is describing as a “conservative budget” might, to some, feel like a raid ram-raid on the pockets of the middle classes by a government so often keen to tout its pro-earning stances as the “party of business”.
That said, ’tis not all doom-and-gloom; especially for those businesses.
Last week, I wrote about the importance of the convenience sector standing together to be heard in the corridors of power; lest we, through omission, face more hardship than is palatable or applicable to us. While many private citizens may feel overlooked by this budget, I am pleased to say that independent retailers might be able to feel some cautious optimism.
After making our voices heard…
- The business-rates multiplier will be frozen for longer, rather than being reduced to supplement the treasury.
- Eligible retailers will see business rates relief increase to a maximum of 75% from the previous 50% in April 2023.
- Ineligible businesses will see their bill increases capped to a maximum of £50 in 2023-24. (See the document linked below for more comprehensive details on this.)
There will undoubtedly be challenges for businesses, as the national living wage increases and the £1.7 relief package for the industry seems to be a little unevenly distributed (favouring town centres by a noticeable margin). However, the concerns of our community have not been ignored, and you retailers haven’t been forgotten about.
Now is not the winter of our discontent, far from it. Nevertheless, this statement does, for our industry, seem to be a more welcome one than the “trussonomics” approach of a few months ago.
Let us know what you think about the Autumn Statement:
Email: info@c-talk.co.uk
or visit: www-talk.co.uk
READ THE RESPONSE FROM ACS (Association of Convenience Stores):
THE COMPLETE BUDGET CAN BE FOUND HERE: