Press Release

Small Change for Local Newsagents

23 April 2009

The NFRN has released the following statement in response to the Chancellor's Budget Announcement yesterday (April 22).

The 2009 budget will provide small change for independent newsagents who are in dire need of easier access to credit, a more supportive attitude from suppliers by avoiding the tightening of terms, a rethink on VAT and a delay in the planned increase in employers` National Insurance contributions.

Hikes in alcohol, tobacco and fuel duty will all have their knock on effect on sales and the cost of doing business. The huge rise in landfill taxes will no doubt provide newspaper and magazine wholesalers with further excuses to raise Carriage Service Charges for newsagents.

The several planned changes to Business Rates, due to come into effect over the next two years, will have a particularly damaging effect on independent retailers during this current period of economic uncertainty. The option of postponing part of this April's five percent annual increase is welcome but not enough as it simply moves the cost from the profit and loss account to the balance sheet.

The NFRN welcomes the work in hand that will better link people losing jobs in retail to retailers` recruiting. But the budget has done little to help under pressure retailers keep people in work. This year's revised timetable for deciding the National Minimum Wage meant it was not mentioned in The Budget. The Government and Low Pay Commission must keep any increase below 1% to allow retailers to both maintain and increase job opportunities.

The NFRN predicts consumer confidence to remain frail in the light of the Chancellors announcements.