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SGF Comments on Emergency Budget
22 June 2010
The Scottish Grocers’ Federation (SGF) fears the increase in VAT from 17.5% to 20% announced by the Chancellor, George Osbourne MP, in the emergency budget, will place small shops at a further competitive disadvantage to the multiples as they will be unable to absorb a large increase in VAT. VAT will increase from the 4th January 2011.
John Drummond, Chief Executive of the SGF said:
“An increase in VAT not only impacts sales but also creates costly operational disruption. For a typical convenience store a VAT change requires price and signage changes on approximately 50% of the range.
“An increase on the 4th January 2011, which is a bank holiday in Scotland, will place a major bureaucratic burden on retailers during the busiest time of the year.
“Usually small retailers will attempt to absorb any increase in VAT to ensure customer retention. However, this large increase in VAT means this will only be an option for the largest retailers.
“We do welcome plans to reduce the headline rate of corporation tax and in particular plans to lower the small companies rate of corporation tax to 20%.”
SGF Welcome Small Business Focus in Minimum Wage Review
21 June 2010
The Scottish Grocers’ Federation (SGF) has welcomed the Coalition Government’s announcement that the Low Pay Commission will review the national minimum wage and its impact, with particular reference to small firms.
John Drummond Chief Executive of SGF said:
“SGF is supportive of the NMW which provides a minimum standard that wages cannot fall below. Retailers try hard to pay above this rate but it has become increasing difficult to maintain staffing levels and reward loyalty and experience due to a squeeze on differentials caused by the year on year above inflation increases in the NMW.”
SGF submits written evidence to the Low Pay Commission each year.
Scottish Grocers Federation