FOR RETAILERS BY RETAILERS

FEATURED STORY

THE DRASTIC 6.7% INCREASE: WHAT WAS SAID IN THE 2024 OCTOBER BUDGET?

Today, Rachel Reeves, the first female Chancellor to present a UK Budget, announced measures that will impact our sector greatly. Beginning with wages and stretching to workplace policies, the National Living Wage is set to rise by 6.7%, bringing it to £12.21 per hour from April 2025.

Today, Rachel Reeves, the first female Chancellor to present a UK Budget, announced measures that will impact our sector greatly.

Beginning with wages and stretching to workplace policies, the National Living Wage is set to rise by 6.7%, bringing it to £12.21 per hour from April 2025. 

“We are all worried,” Natalie Lightfoot of Londis Solo Convenience tells us, “I think we will be looking to reduce hours again. Possibly reduce down a member of staff to cope with the additional increase.”

Natalie also warns, “It won’t be the only thing that will now go up with this. Our small suppliers will definitely increase their prices to accommodate as will the knock-on effect to cost of goods/transport etc.”

Jimmy Patel from Jimmy’s Stores agrees, “Ditto that, we have to think about moving away from more price marked products, or suppliers have to be 30% plus on price marked goods!”

Jimmy then notes that with the hourly rate and National Insurance increase, “It’s going to hit all small businesses. People will think government has given them this, but it’s from our profits!”

Young workers aged 18 to 20 will see an even larger boost, with their hourly rate increasing by £1.40 to £10 – the biggest increase on record for this age group.

Dee Sedani, One Stop retailer with two stores in Derbyshire, notes that theft will just increase due to the prices going up.

“Just had one of my staff say ‘Oh great, more money’,” Trudy Davies from Woosnam & Davies News shares with us, “I pay over min wage pay & they expect me to rise 6.7% to theirs to keep in line with the min wage workers. Everyone will want 6.7%, not just on min wage. 

“The Government is giving out the wrong signals / prices will increase / delivery charges. Also, I foresee retailers small businesses reducing spend on – growth – nothing left in pot after paying all the higher costs to invest in our businesses for growth. That’s my opinion only- I’m sure there’s more to come.”

Earlier this year, there is evidence in the Low Pay Commission by the ACS that in order to handle the national wage increases, 53% of retailers have reduced the money they invest in their businesses, 53% have had to increase their prices in store, and 47% have had to take lower profits. 

National Insurance Employer contribution has also risen by 1.2%, meaning more money out of retailer pockets and profits. 

On a brighter note, Reeves also announced £1.8 million in compensation for victims of the Post Office Horizon scandal, recognising the “pain and injustice” they have suffered. A step forward in the right direction, thought nothing will compensate for the lives that were lost and livelihoods ruined.


As well as this, new commitments have been made to tackle shop theft and funding directed to tackling organised gangs. For shoppers, there’s a freeze on fuel taxes in 2025.

A new levy on vaping liquids is also on the way, set to take effect in October- introducing a toll of £1-£3 per 10ml vape liquid, increasing depending on nicotine levels. It would set the average UK vaper back almost £73 a year on the habit.

Responses

SHARE THIS POST

YOU MAY ALSO LIKE...