SGF Concerned About Forthcoming National Living Wage Increase

The Chancellor of the Exchequer yesterday confirmed in his Autumn Statement that the National Living Wage for people aged over 23 will increase from April 2023, to the hourly rate of £10.42 – this represent an increase of 9.7%. This will present local shops and in particular convenience stores with significant challenges going forward.

Beyond this, Scottish Grocers’ Federation believe the Scottish Government should look to provide additional support around business rates and associated reliefs as announced for by the Chancellor for businesses in England.

SGF chief executive Dr Pete Cheema OBE said:

“The hike to the National Living Wage from April 2023 represents almost a double-digit increase and will hit retailers hard particularly as wage costs are a large proportion of shop costs. This in turn will jeopardise profitability, employment sustainability and ultimately business survival.

This comes at a time when convenience retailing businesses are being confronted with an exceptionally challenging trading environment which is characterised by the industry being exposed to soaring energy costs, rising inflation, and rising interest rates and a cost of living crisis. On top of this the smooth flows that produce efficient and effective supply chains are broken introducing further costs and disruption. While there are no easy answers, this latest increase to the National Living Wage will potentially prove a step too far for many retailers.

What I would say however is that the steps the Chancellor announced to support businesses in England such as freezing the business rates multiplier at its current level in 2023-24 and increasing from 50% to 75% in April 2023 the business rates relief for eligible retail and hospitality businesses up to a maximum of £110,000 of relief per business, is move in the right direction. This will help support convenience stores and other local shops.

From our perspective, the Scottish Government should look to use their forthcoming Winter Budget to provide, at the very least, similar support here in Scotland.

I will be writing to the Scottish Government on these important issues as a matter of urgency.”