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Best practice on offering and processing ‘card not present' payments

23 Apr 2020

This guidance is designed to inform retailers about best practice on offering and processing ‘card not present' payments during the Covid-19 outbreak.
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Get ready to make your claim under the Coronavirus Job Retention Scheme today!

20 Apr 2020

As of today employers can make a claim through the Job Retention Scheme if they have put their employees on temporary leave (furlough) because of the coronavirus (COVID-19) outbreak.
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Protect your business from fraud and scams!

14 Apr 2020

How fraudsters are convincing you to make urgent payments, and some practical security measures to help protect your business and keep your payment control processes robust
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COVID-19: "Find an open bike shop" website launched by ACT and BA

9 Apr 2020

The ACT and the BA together have created a tool whereby key workers and others can quickly find open bike shops.
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Future of speciality retail under challenge by big business

9 Apr 2020

The IRC, has identified that independent retail business owners personally fall through the gap in the Government's Coronavirus Business Support Programme.
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Government pressures banks to support small independent businesses

3 Apr 2020

The Business Secretary has called on high street lenders to ease access to the Coronavirus Business Interruption Loans Scheme (CBILS) for small independent retailers during the crisis.
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National Living Wage Increases and Future Targets

2 Apr 2020

The National Living Wage and National Minimum Wage rates increased yesterday, following recommendations made to the Government by the Low Pay Commission
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Local Bike Shop Day 2020 postponed following retailer vote

31 Mar 2020

As Local Bike Shop Day is a day encompassing the whole trade, the final judgement was given to the bike shops that had signup to take part. Out of all the respondents the overwhelming majority -... Read more…

IRC supports Government's challenge to business insurers

31 Mar 2020

The Treasury Select Committee led by Mel Stride MP, has challenged the Association of British Insurers (ABI) regarding the support offered to business via their members, with specific regard to... Read more…

Nearst enables you to stay in contact with your customers via Whatsapp

27 Mar 2020

ActSmart partner NearSt introduce the option to add WhatsApp chat functionality on your NearSt shop page!
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Future of speciality retail under challenge by big business

Posted on in Business News

The Independent Retailers Confederation (IRC) has identified that independent retail business owners personally fall through the gap in the Government's Coronavirus Business Support Programme.

The great majority of indie retail business owners pay themselves well below the minimum wage via PAYE and are then wholly dependent upon generating trading profits - after corporation tax upon their small limited companies - from which they might pay themselves a dividend.

These business owners are unable to claim personal income via the government Self-Employment Income Support Scheme, and the Job Retention Scheme would in most cases earn less than £835p.m. although they have to continue working in some format in order to simply keep their businesses alive.

The Government has now incorporated company directors into the furlough guidance, but the limitations are such that they inevitably will fall outside of the scheme.

The IRC penned a letter to the Chancellor, highlighting this issue with clear recommendations to address it in the interests of business continuity for the indie retail sector.

The proposal is supported with clear criteria, supported by IRC member trade organisations.

But, in taking prior soundings for the proposal Government's stance is that "dividends are not covered by the Coronavirus Job Retention Scheme because income from dividends is a return on investment in the company, rather than wages, and is not eligible for support".

For many business owners the return upon investment is their main source of income. Independent retailers make huge investments in their businesses to get them operational, often supported by personal guarantees; they then draw minimal wages, work excessive hours and risk all to generate a living wage via their investment, both personal and financial.

Undermining their negligible personal income at this time is putting the future of the high street as we know it at serious risk. The situation was perilous for many before Coronavirus and with the ongoing situation is has only worsened.

It's almost certain that the level of claims arising via large businesses, including retail multiples has surprised the Government and put a dent in further support for the micro and SME sector.

It has been predicted that over 6m private sector employees could be furloughed earning 80% of basic pay, at a cost of £10bn per month i.e. £30bn up until the end of May when the scheme is due for review and likely extension according to Thisismoney.co.uk.

Sir Philip Green has been reported to be furloughing 14,500 employees, whilst according to Sky News the Arcadia Group is seeking to borrow up to £50m against its distribution centre to see the business through the coronavirus crisis. Whilst the boom in demand for food arising from the crisis has seen Tesco announce a £635m dividend, whilst benefiting from a business rates holiday worth £585m according to the Guardian.

All of this at a time when independent retailers are getting negligible support from the banks. A survey of 300 independent retailers showed that just 1% that had applied for a business interruption loan had been successful so far.

Against this background micro retail business owner financial support is a critical and relatively small requirement, simply to allow them to see their businesses through this challenging period.

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