Small Retailers Urge Chancellor to Reconsider Policies Threatening Their Survival
In an open letter to Chancellor Rachel Reeves, small retailers and corner shop owners from across the country have expressed their grave concerns about the Labour Government’s Spring Forecast and the proposed restrictions on advertising freedoms within the Tobacco and Vapes Bill. The letter, signed by prominent retailers such as Atul Sodha of Londis, Harefield, and Kay Patel of Global Food & Wine and Best-one, London, highlights the financial burdens and regulatory pressures that threaten the survival of their businesses.
The retailers argue that the Spring Forecast fails to alleviate the economic challenges they face, including inflation, rising operational costs, and decreased consumer spending. They specifically point to the planned increase in National Insurance Contributions (NICs) for employers in April, which will further strain their tight margins and potentially force them to reduce staffing levels or cut jobs.
Compounding their financial woes, the Tobacco and Vapes Bill proposes strict limitations on the advertising and display of tobacco and vaping products. These products constitute a significant portion of the retailers’ sales, and the proposed restrictions would directly impact their revenue. While the retailers support efforts to prevent youth access to these products, they believe that overly restrictive advertising rules will disproportionately harm law-abiding small businesses while allowing illicit trade and unregulated markets to thrive.
The letter emphasizes the crucial role small retailers play in their local communities, providing essential goods, employment, and personalized service that larger chains cannot match. The retailers urge the government to acknowledge the challenges they face and engage with them to develop balanced and fair policies that protect public health without jeopardizing their livelihoods. They implore the chancellor not to “strangle the life out of our business more than you already have.”
In a related comment, Mark Oates, founder of the campaign group We Vape, cautioned that the Tobacco & Vapes Bill risks unintentionally undermining the decline of smoking in Britain. While he welcomes aspects of the bill, such as a licensing scheme to address rogue traders and prevent children from vaping, Oates argues that banning advertising and increasing taxes on vapes dissuades smokers from making the switch to a less harmful alternative.
Oates cites the consensus among experts, including the NHS and Cancer Research UK, that vaping is a crucial tool in creating a smoke-free UK. He warns that the current anti-vaping messaging has led 57% of the country’s 6 million smokers to believe that vaping is as harmful as cigarettes, a misconception that could be exacerbated by an advertising ban preventing retailers from informing smokers about the less harmful nature of vaping.
As the Spring Forecast and the Tobacco and Vapes Bill are set to be debated in Parliament, small retailers and vaping advocates alike urge the government to consider the unintended consequences of their policies and work towards a more balanced approach that supports both public health and the survival of small businesses.
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