The ‘Transforming Business Rates: Interim Report’ includes what have been described as “apparently positive initiatives” aiming to benefit the retail sector and will be of special interest to small independent shops.

The report, published just this month, follows feedback following the Autumn Budget 2024 – which was described as a budget for shrinkage and not for growth by one Northern Irish business owner. The Interim Report has been described as providing an update on what the UK Government has learned since the 2024 Autumn Budget and what it will do next to meet its “objectives of delivering a fairer business rates system that supports investment”.

“The government will now engage with stakeholders on the reforms outlined to incentivise investment, so that we can remove barriers in the system and provide certainty and stability for ratepayers,” said Dan Tomlinson, Exchequer Secretary to the Treasury.

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“The Interim Report does not represent a set of policy recommendations. The Chancellor will provide a further update at Autumn Budget 2025, taking into account the 2026 revaluation outcomes, local government funding, and the economic and fiscal context.

“Any reforms taken forward will continue to recognise the importance of high streets as a vital source of essential services, a focal point for communities and the foundations of strong local economies,” he added.

Some of the detail outlined in the report includes measures changing the rates effect of opening a second property, changes to Transitional Relief, measures on Improvement relief when properties are enhanced as well as preparations for the merger of VOA and HMRC which could improve clarity of this currently very complex area of taxation.

The Federation of Independent Retailers (the Fed) issued a cautious welcome for the Interim Report but called for more consideration for the independent retail sector.

“Overall, the retail sector accounts for about 5% of the economy, but 20% of the Rates Bill and it is right that this area is subject to reform as our members face competition from online retailers based in out-of-town locations,” said National President Hetal Patel.

“Whilst the Fed welcomes the Chancellor and government’s focus in this area, we urge them to fully consider the importance of the retail sector – especially small independent shops, which are often at the heart of their communities and have rightly benefited from Rates Relief in the past.

“Many of our members had higher rates bills in April because of lost Retail, Hospitality and Leisure Relief in the last Budget and will await this year’s Budget and the Business Rates Revaluation – which will occur for the first time since 2023 – with concern.

“We are keen for the government to introduce new permanent retail, hospitality and leisure multipliers as low as possible from 2026, and to upwardly rate Small Business Rates for the very smallest businesses in line with inflation – but remain open to continued positive engagement in this area.”

You can read the Interim Report here: https://www.gov.uk/government/publications/transforming-business-rates-interim-report

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“Retailers have been to the fore in implementing the Windsor Framework in a way that has largely ensured that customers in Northern Ireland have generally not noticed much difference in the broad range of products on the shelves,” said Mr Johnston.

“Complying with these regulations has been bureaucratic and costly for retailers however, and that is why we welcomed the prospect of a deal on SPS arrangements when the UK and EU announced their desire for this in May. Unnecessary bureaucracy leads to additional costs which ultimately will impact on prices faced by consumers.

“We understand that negotiations on the details can take time, but it would be to the benefit of all concerned if a deal could be reached sooner rather than later. We would encourage the UK government to try to reach a deal before 2027.

“What is vitality important, however, is that given the commitment to a deal on both sides, that current regulations are enforced in a pragmatic and proportionate way until the improved deal is implemented.

“The government is also committed to protecting the operation of the UK internal market and it is crucial for consumers that this commitment is upheld. Consumers should not face reduced choice between now and any SPS agreement due to the over-zealous enforcement of rules that all sides are committed to removing.”

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The next stage for the Bill will be a debate in the House of Lords on Wednesday 23^rd April.

Meanwhile, retailers are being encouraged to sign an open letter telling government that the Bill is likely to drive more customers to illicit tobacco and illegal vapes.

The letter, addressed to Jonathan Reynolds, Secretary of State for Business and Trade, expresses dismay at the Bill which will have a direct impact on thousands of retailers across the UK, with the Bill putting businesses at risk and endangering retailers’ livelihoods.

“We understand the government wanting to stop smoking in the UK, but there doesn’t seem to be any guarantee this Bill will do that,” reads the letter.

“There is little doubt that this Bill will just drive even more smokers to seek out easily available, cheap cigarettes and vapes. The criminals smuggling and selling these products are already taking legitimate sales away from responsible retailers.

“Some estimates say that 25% of cigarettes in the UK are illicit – and we all know how illegal vapes have also flooded the UK in recent years. As it stands, local enforcement is already inadequate – responsible retailers have little recourse.”

The letter goes onto stress that violence and abuse directed at convenience store workers are at an all-time high.

“Keeping customers and staff safe is the number one priority of any responsible retailer – and most of us are responsible,” it adds.

Asking the Secretary of State to listen to retailers, the letter adds thousands of them are facing “real economic hardship, possibly even collapse, off the back of a Bill that will likely fail in its objective”.

“As it stands, the Bill only promises to push the convenience retail sector towards the brink and put its staff in the firing line. The only people who stand to benefit are the criminals who are already flooding our communities with dangerous products,” it concludes.

Retailers are encouraged to sign the letter at Protect Your Store | An Open Letter to The Secretary of State

NI Assembly members voted in support of the region’s inclusion in the Tobacco & Vapes Bill in February this year, following a plenary debate on the Legislative Consent Motion on the Bill.

Health Minister Mike Nesbitt said the Bill was a landmark step providing an opportunity to reduce preventable deaths and health inequalities across NI.

However, the Tobacco Manufacturers’ Association said the generational ban “lacks common sense” while also completely disregarding the unintended consequences, and the UKVIA added that while it supports the need to tackle youth sales, it was necessary not to ignore those adult smokers who turn to vapes in a bid to stop smoking.

The post Tobacco & Vapes Bill passes through House of Commons first appeared on Neighbourhood Retailer.

Results from a survey of 1,000 retailers conducted on behalf of JTI* has found that 63% of retailers would prefer raising the minimum legal age of purchase for tobacco to 21, rather than a generational smoking ban.

Retailers revealed several concerns about a proposed generational smoking ban, with 78% feeling that it would lead to more illicit tobacco in their local area. With 30% of cigarettes and 54% of hand rolling tobacco in the UK already coming from illegal and other non-duty paid sourcesⁱ, this is a problem that the government needs to clamp down on and not exacerbate.

The survey found that eight out of 10 retailers (78%) believe the government’s budget would be better spent tackling illegal tobacco rather than on implementing a generational smoking ban, suggesting a disconnect between government priorities and those of retailers. An additional survey of JTI360 users also showed that 70% of retailers do not think enough is currently being done to tackle illicit tobacco in their area**.

With age verification one of the top reasons for violence against retailersⁱⁱ, understandably, retail crime was also a concern to those surveyed. Violence against retailers continues to rise at an alarming rate, almost doubling year-on-year with 76,000 incidents in 2024 vs 41,000 in 2023ⁱⁱⁱ. Nearly two thirds (62%) of respondents* suggested that the proposed generational smoking ban would lead to further increase of threatening behaviour towards retailers.

Sarah Connor, Communications Director at JTI UK said: “This survey clearly identifies the concerns of the retail community regarding a potential generational smoking ban.

“At a time when convenience stores across the country are facing unprecedented levels of theft, violence and abuse, we urge the Labour Government to consider the views of retailers before implementing any new legislation. Retailers can share their concerns around the Tobacco and Vapes Bill by writing to scrutiny@parliament.uk before 7^th January.

“JTI and many retailers we have spoken to are calling for an increase in the minimum age of purchase to 21 as a viable alternative to a generational smoking ban. In recent years we’ve seen sales of illicit tobacco continue to rise at an alarming rate. Whilst we welcome the proposed granting of new powers for Trading Standards, additional funding is still required so that they have the resources required to combat the ever-growing illicit tobacco trade.”

*Research conducted with 1,000 independent and symbol convenience retailers in September 2024 by Acorn Retail Promotions on behalf of JTI UK  

** Survey of 1458 retailers via the JTI360 Tobacco Trade site – August/September 2024.  

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The Bill aims to introduce a progressive smoking ban to gradually end the sale of tobacco products across the UK, so that anyone born on or after 1^st January 2009 will never be able to legally be sold cigarettes. This means there will be no restrictions on people who can already legally smoke.

As part of the Bill, the UK Government unveiled its plans to introduce a licensing scheme for retailers to sell tobacco, vape and nicotine products in Northern Ireland, England and Wales, and will introduce on-the-spot fines of £200 to retailers found to be selling these products to people underage.

These measures will protect law-abiding businesses and tackle illicit products being sold, the government claims.

The inclusion of Northern Ireland in the new Bill will be subject to the agreement of the NI Executive and support of the NI Assembly.

The Bill strengthens enforcement activity including the extension of the Tobacco Retailers Register to include vapes and other nicotine products. It also includes provision to allow for the introduction of a retail licensing scheme in the longer term to replace the Registration scheme. This will be subject to public consultation.

Introduced in Parliament on 5^th November, the Bill will also ban vape advertising and sponsorship, as well as create new powers to restrict the flavours, display and packaging of all types of vapes.

Following the announcement, JTI urged the government to focus on evidence-based, effective solutions, and implement a minimum age sale of 21 instead.

The burden of enforcing a generational ban will fall squarely on retailers, and disproportionately on smaller, independent retailers JTI stated.

“Recent British Retail Consortium data revealed 1,300 instances of shop workers being verbally or physically assaulted every day in 2024^[1], with a significant proportion of these attacks following a request for age verification,” they said.

“The proposed generational ban and subsequent increase in ID checks will put retail workers at even greater risk, particularly in small and independent businesses that have no security staff or additional protections. The physical and mental impact on victims is estimated to cost UK retailers £3.3 billion annually^[2] – further highlighting the inconsistent approach from a government that has just announced, as part of Chancellor Rachel Reeves’s budget, to ‘stop shoplifting in its tracks’.”

They added that not only would increasing the age of sale to 21 help deliver the same health outcomes, it is also “simpler and less burdensome for retailers” and removes serious challenges pertaining to the legality of a generational smoking ban in Northern Ireland.

Meanwhile, the UK Vaping Industry Association (UKVIA) said that while it welcomed the proposed licensing scheme, it believes the fines should be much higher.

“The  legitimate vaping industry has long advocated for the creation of a licensing scheme for retailers and distributors, and we are delighted that vape licensing is now firmly on the policy agenda,” said Director General John Dunne.

“This development will enable youth and illicit vaping to be addressed, allowing the industry’s focus to remain on supporting adult smokers in quitting.”

Mr Dunne added that the UKVIA would welcome the opportunity to collaborate with government officials in ensuring that the future licensing is robust and serves as an effective means of monitoring the vaping market.

“For instance, in our view, the licensing scheme must include vaping distributors, and fines should be set at up to £10,000,” he added.

Northern Ireland Health Minister, Mike Nesbitt said the Bill’s measures offer a huge public health opportunity to reduce preventable death and illness.

“This Bill will also stop vapes and other consumer nicotine products, such as nicotine pouches, from being branded and advertised to appeal to children. Together these measures will help stop the next generation from becoming addicted to nicotine.”

Mr Nesbitt said he intends to introduce a Legislative Consent motion shortly and added that his Department will continue to work closely with the UK Government on the range of proposals being considered in the new Bill.

Information on the Tobacco and Vapes Bill is available at Smoking ban introduced to protect children and most vulnerable – GOV.UK

[1] Retail Week, BRC demands action as retail violence and abuse rises to 1,300 incidents per day | Retail Week (retail-week.com), 14/09/24.

[2] Retail Week, BRC demands action as retail violence and abuse rises to 1,300 incidents per day | Retail Week (retail-week.com), 14/09/24

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