The Scottish Grocer’s Federation has warmly welcomed action in the budget to reduce the cost of National Insurance and to ensure faster payment on card transactions – two measures which could make a real difference to Convenience Store retailers.
The new ‘Employment Allowance’ for National Insurance is aimed at reducing employer NI contributions, particularly for small businesses. It is planned that the allowance will be introduced from 2014. On average, employers with fewer than 10 employees over the course of the year will see their employer NICs bill reduced by 80 per cent.
The UK Government has secured a commitment from the payment card industry to reduce the time it takes for credit and debit card payments to reach a shops bank account by up to three days, by using the Faster Payments System to process payments.
Chief Executive John Drummond said,
“We are delighted to see at last two measures which will genuinely help Convenience Store retailers. The allowance on National Insurance will make it easier for stores to take on new employees, while faster card payment system will make a big difference to cash flow for our members, keeping more stores open and able to invest in their business and their community. The Convenience Store sector asks very little from Government so it is refreshing to see two measures which will help the business environment.”