INDEPENDENT RETAIL REPORT 2018 - NFRN · of items stolen was £237, compared with a median value of £500 today.3 This cost is escalating year-on-year, with a 60 per cent increase

INDEPENDENTRETAIL REPORT2018

About the NFRN:The Federation of Independent Retailers

While it can trace its history back to the 1840s, it was in Leicester in July 1919 that the first unified conference of the NFRN was held.

One hundred years later, in today’s highly competitive market, membership of the NFRN still gives independent retailers a trading advantage as our 15,000 members show. From access to professional legal and financial services through to our NFRN Legal and NFRN Legal Plus services, business development support and membership of our own buying group, to a campaigning team who are fighting for retailers in the corridors of power, the NFRN provides members with all the services, protection and support they need.

A team of national officials, led by the National President, are elected by the NFRN’s Annual Conference which sits at the top of a democratic membership structure that reaches from local branches and districts to the National Executive Committee and National Council.

While the NFRN’s policy is set by members at Annual Conference, implementation of that policy is the responsibility of the NFRN team, based in Yeoman House in the heart of London.

An experienced field force is one of the NFRN’s great strengths. Retail Development Managers and Retail Support Officers support members in their place of business, keeping them up to date with regulatory changes, the latest offers and helping members to make the most of the benefits the NFRN offers.

NFRNOnline.com is the NFRN’s main website, providing a place for members to obtain the information they need about industry and legal developments, news, and details of how to access the NFRN’s services. Members also receive The Fed magazine five times a year and regular local bulletins, all of which contain in-depth articles on the issues that most affect retailers,.

The NFRN’s portfolio of services to independent retailers is completed by our associated companies NFRN Credit Union that provides savings and loans products and NFRN Mutual that provides a range of business cover tailored for retailers.

With its member-focused approach and a hundred years of retail experience, no organisation does as much as the NFRN to help today’s independent retailer.

Membership of the NFRN consists of a variety of independent retailers, including:

• NEWSAGENTS • PETROL FORECOURTS • COFFEE SHOPS

• CONFECTIONERS • NEWS DELIVERERS • CARD & STATIONERY SHOPS

• CONVENIENCE STORES • FLORISTS • POST OFFICES

NFRNINDEPENDENT RETAIL REPORT

CONTENTSWelcome from Linda Sood, National President page 4

Retail Crime page 5- Shop Theft- Violence and Abuse- Robbery, Vandalism, and Fraud- APPG on Retail Crime- The Illicit Trade Market- Impact on Communities- APPG on Illicit Trade

Market Fairness page 12- ATM Interchange Fee Reduction- Business Rates- The News Industry- Service Failings- Minimum Unit Pricing for Alcohol- Deposit Return Scheme

Employment and Administration page 19- National Living Wage- Licensing- Pension Auto-Enrolment

Customer Accessibility page 21- Parking- Road Works

References page 23

NFRN INDEPENDENT RETAIL REPORT

Welcome fromNational President, Linda SoodIndependent retailers play a critical role in communities across the UK. We help raise much-needed funds for local causes, give young people their first jobs, keep a watchful eye out for our more elderly or disabled customers, exclusively provide a store-to-door news delivery service and we act as a gateway for bill payments. In short, we are the heart that keeps local communities beating.

But the challenges that we are facing are greater than ever before, with incidents of retail crime rising daily, with ever increasing costs – whether these are for our newspaper and magazine supplies or for employing staff - and with the burden of regulation.

And because of all this our livelihoods and the future of the independent retail sector is in question.

That’s why we need your help.

Our members pride themselves on being responsible retailers, ensuring that age-restricted products do not get into the hands of children and that the alcohol and tobacco we sell have had the correct duty paid on them. We champion policies that will reduce plastic waste and, thereby, protect our oceans, its inhabitants, and ultimately humanity itself – since we all depend on the sustainability of our marine environment.

We offer a beneficial service to the surrounding community and the nation as a whole. Behind every independent retailer is a family business that gives back to their neighbourhood and for whom their shop is also their home.

In our world of increasing challenges for micro businesses, the NFRN exists to fight on behalf of our 15,000 members, supporting them in the daily running of their business and challenging legislation and regulation which, often unintentionally, can threaten our very existence.

Through this Independent Retail Report we aim to shine a spotlight on the range of issues that impact on independent retailers and jeopardise our businesses; whether environmental concerns, lack of fairness, or the very real threats of violence and abuse. I encourage you, after reading this report, to contact the NFRN and your local independent retailers to discuss the issues that matter to them and how you can help.

Napoleon reportedly once described Britain as “a nation of shopkeepers” and we are proud that, for centuries, we have served our unique and vibrant communities. Please support us to ensure that this continues to be the case.

Linda SoodNational President of the NFRN

...we are the heart that keepslocal communities beating.”“

5


Retail CrimeRetail crime encompasses a wide range of offences that are committed against either retail businesses or premises or the business owner or staff. Over the past few years, our members have voiced their growing concerns with the level of retail crime affecting their business and their way of life.

Shop Theft

Shop theft is the most common and widespread type of crime in the retail sector, with 377,172 incidents for the year ending June 2017 – up 11 per cent from the previous year and three times higher than in 2007-081. The 2016 BRC Crime Survey revealed a record high in terms of the cost to retailers, with retailers losing £438 million in 2015.2 Overall, the cost of theft has increased by more than 100 per cent in the last few years. In 2012, the medium value of items stolen was £237, compared with a median value of £500 today.3 This cost is escalating year-on-year, with a 60 per cent increase on the previous year.4 Retailers across the UK report that one of the biggest threats to their business is customer theft. As a result, retailers continue to invest heavily in loss prevention measures, including CCTV, mirrors, panic alarms, shutters, and high-value items secured behind counters and overhead gantries. However, micro-businesses do not have the financial capability to invest the same as large national chains, who have a physical security presence.

For these reasons, it is important that small independent retailers can trust their police to respond promptly and reliably. Yet, a majority of businesses (56 per cent) say that they believe the police operate ‘poorly’ or ‘very poorly’ when dealing with retail crime.5 Businesses require better police collaboration for the investigation of crimes that cross police force borders.

Retailers are reporting more organised levels of criminal activity, which can often fall into gaps between police borders. Although regional police response units have been created, the NFRN is concerned about the capability of law enforcement to respond to offenders who operate beyond this. There is a significant under-reporting of crime, in particular, shop theft, which the NFRN recognises. The Home Office’s “Crimes Against Businesses – Victimisation Survey” revealed in early 2017 that on average only 36 per cent of shop theft by an unknown person is reported to the police.6

Reductions in resources available to police forces are undoubtedly posing challenges, and more broadly the lack of consistency in responses to retail crime across the country is considered a major obstacle to fostering trust and building confidence.

Speaking to NFRN North West district members in November, Lancashire Police and Crime Commissioner (PCC) Clive Grunshaw admitted that more action was needed to tackle retail crime. He also urged members to report all incidents of shop theft, no matter the value of the product taken.

ONLY 36%OF SHOP THEFTBY AN UNKNOWN

PERSON IS REPORTED TO THE POLICE

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Yet, around the same time, the Metropolitan Police announced its new Crime Assessment Policy, featuring guidelines designed to help police officers decide whether to investigate a lower level crime.7 There does not appear to be a precise definition of ‘lower level crime’, but comments by high-ranking police personnel indicate that they refer to instances of shoplifting, car crimes, some minor assaults and burglary, criminal damages, and thefts.

Deputy Assistant Commissioner Mark Simmons, for example, argues that “with the pressure on our resources it is not practical for our officers to spend a considerable amount of time looking into something where for example, the value of damage or the item stolen is under £50”.8

Similarly, Paddy Tipping, the elected PCC in Nottinghamshire, stated recently: “We will do our best with the resources we have got. Is shoplifting as important as investigating a serious sexual assault? It is not. [...] So there are jobs that we do at the moment that will have to take a lower priority. If people report shoplifting will the police come? Probably not.”9

These statements come despite 8,786 shoplifting instances being reported in the period from June 2016 to June 2017 in Nottinghamshire alone.10

As John Barlow, a newsagent in Nottingham, rightly pointed out, “the police are basically telling thieves, ‘Help yourselves.’ Of course, there are more serious crimes police need to solve but you can’t just give thieves a licence to steal.”11

We believe no crime is too small and we cannot simply ignore crime because of cost. The NFRN is urging all PCCs to send a clear message to their police forces that shop theft cannot be downgraded.

The NFRN calls for: The government to ensure that local police forces have statistics that can transparently show them the cost of shoplifting to businesses and the local area, in order that the PCC can make transparent decisions about how the police forces distribute resources in their bid to reduce crime.

CASE STUDY

NFRN member Hirenkumar Patel now requires his customers to knock before he lets them in, following three alcohol thefts in four days.

The father of two said: “It’s sad that I’m having to vet people. I have to keep my family safe and cannot afford to lose more stock. My regular customers are supportive of me.”

Mr Patel, who runs the store together with his wife Dipika, claimed he started locking the entrance door after three robberies and thefts by the same man within four days.

The robber first struck at 7.45am after Mr Patel told him that he was not licensed to sell alcohol before 10am. He said the man took two bottles of spirits worth £42 and then threatened him, shouting: “Don’t touch me, don’t touch me”. Mr Patel said that he called the police, but was told that he would have to wait seven days for an officer to come as they were “too busy”.

The next day, the same man returned and, this time, took three bottles of spirits. Mr Patel said: “I told him not to do it and that I would call the police, but he said, ‘I will smash the bottle over your head’. This time a police officer came within 20 minutes, but he then had an emergency call and had to leave.”

!

CRIME IN THERETAIL SECTOR IS

3 TIMES HIGHER

THAN IN 2007-08

56%FELT POLICE

OPERATE “POORLY”OR “VERY POORLY”WHEN DEALING WITH

RETAIL CRIME

...If people report shoplifting will the police come? Probably not.PCC Paddy Tipping ”“

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The NFRN calls for: The government to revisit its stance on the leniency of some of the sentences for assault of workers, as well as the fact that many other offenders are not even charged. We implore the government to do more to help protect shop workers in their place of work, in particular by introducing a specific offence for assaulting a shop worker when asking a customer for I.D.

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Violence and Abuse

Retail staff continue to suffer an unprecedented level of violence and abuse in their workplace, which for a large proportion of NFRN members, is also their home. The interim results of the Union of Shop, Distributive and Allied Workers (USDAW) “Freedom From Fear” survey show that over the past year, almost two-thirds of shop workers were verbally abused, 40 per cent were threatened and approximately 250 retail staff were victims of violent assaults every single day. These are worrying numbers, in particular in comparison to last year’s survey, with abuse and assaults up by 25 per cent and threats by 38 per cent.12

In an industry of three million workers, the retail sector needs to have the confidence that they will be protected in their place of work. It is the smaller retailers that are on the frontline and see more violent behaviour and are prone to be assaulted by customers; therefore, smaller retailers need extra protection and depend on faster response times from the police. Almost a third of incidents go unreported due to the lack of confidence in the police to take the incident seriously and for the crime to be dealt with. Many instances of violence arise when shop workers request proof of I.D on age-restricted products, such as alcohol, tobacco and lottery products. NFRN members pride themselves on being responsible retailers and operate age restricted schemes such as “Challenge 21” and “Challenge 25” as well as carrying out a “No I.D, No Sale” policy. However, this can often be the main cause of violence and abuse from customers.

A 2017 survey commissioned by Under Age Sales, the USDAW shop workers’ union and the NFRN revealed that approximately 6,000 store workers encounter verbal or physical abuse on a daily basis due to asking customers for their I.D when purchasing age-restricted products. Of those surveyed, a shocking 80 per cent reported that they had faced verbal abuse and 24 per cent have been physically attacked after asking young people to produce their I.D. Abuse rates are particularly high for Asian or British-Asian staff, with 23 per cent physically threatened and 33 per cent verbally abused after asking for I.D – compared with only 7 per cent of White British workers. On a daily basis, this amounts to approximately 250 racially motivated attacks in retail stores.

Worryingly, of the retailers reporting instances of verbal and physical abuse to the police, a staggering 57 per cent did either not receive a response at all or were dissatisfied with the action taken by the police.

A third of retail workers have admitted that these attacks have reduced their confidence in asking for ID, fearing verbal and physical retaliation simply for wanting to ensure that minors do not come into contact with age-restricted products.13

6,000STORE WORKERSencounter abusedue to asking customers for I.D.every single day

Threatsare up by 38%

Abuse and assaultsare up by 25%

250RETAIL STAFFare assaulted every single day









COMMENT FROMSURVEY RESPONDENT

“Receiving abuse after asking for ID is a weekly occurrence for me. I’m very often told they will be waiting for me outside when I finish my shift, which is very intimidating. I feel more sorry for my staff having to put up with the abuse. We are only doing our job and the implications of failing to get it right can cost us our job.”14

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Robbery

Police-recorded crime in England and Wales has seen a 13 per cent rise from the previous year, and this correlates to the crimes affecting retailers.15 The most common weapon used in an armed robbery against retailers is a knife. The latest ONS statistics show that knife crime has increased 26 per cent – the highest level in six years, with over 34,000 recorded offences.16 There has been a particular increase in the number of robberies at knifepoint to nearly 13,000 incidents.17 This is a worrying rise for retailers in what is inherently a violent crime which does not only have a financial loss but has often resulted in loss of life. Several NFRN retailers in recent months have been seriously injured in violent robberies.

The cost for robberies varies on average between £700-£1,500 per incident, not including the staff loss to the business due to loss and/or injury. Small independent retailers are reporting that well-organised crime is increasingly prevalent and the NFRN urges both the government and the police to establish a strategy to target the increases in robberies and raids across the country. An astonishing 40 per cent of incidents reported to RAC (Retailers against Crime) are attributed to organised criminals, often working together in groups.18

Small and micro-retailers are seen as ‘easy targets’, as they are often open early until late. Many retailers havelimited staff and can often be outnumbered by violent attackers and raiders. The number of incidents of robbery and attempted robbery of small retailers is increasing across the whole of the United Kingdom.

Figure 2: The volume of violent crime being dealt with by the policehas increased in recent years

England and Wales, year ending March 2003 to year ending June 2017

Source: Police recorded crime, Home Office

Total violence

Number of offences1,500,000

1,000,000

1,000,000

0Apr 05 to Mar 06 Apr 09 to Mar 10 Apr 13 to Mar 14 Jul 16 to Jun 17

Violence with injury Violence without injury Stalking & harassment

Cost for robberiesvaries on averagebetween

perincident£700-£1,500

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Vandalism

On average, there are 319 incidents of vandalism per 1,000 stores, with the average cost per incident accumulating to £802.19 This is a substantial cost for a small business; as a result, retailers are forced to increase prices of their products and delay plans for investment, which affects jobs and the community. Most instances of vandalism and criminal damages go unreported by retailers, with the Home Office Crimes Against Businesses – Victimisation Survey 2016 revealing that only 24 per cent of retailers reported vandalism and criminal damage, down from 31 per cent on the previous year.20

Fraud

Fraud remains a significant threat to retailers, with the level of fraud committed against the sector rising year on year. Fraud and cyber attacks can be very costly; however, it is the loss of consumer trust and reputational damage which can bring the biggest loss for a retailer. Retailers are concerned by an inadequate response to card fraud in particular, with an astonishingly small proportion of fraud cases resulting in prosecution. The Metropolitan Police recorded a ‘Fraud Funnel’ in 2014, highlighting the incredibly low number of fraud cases that were solved; out of 81,631 incidents of fraud reported in London, only 9 incidents resulted in successful police or judicial outcomes.21 In a recent report, the National Audit Office (NAO) said that online fraud was “not yet a priority” for police forces and had been overlooked by the government.22 This is astonishing since the estimated cost of all forms of fraud was £6.8 billion to individuals and £140 billion to the private sector in 2017 alone.23

All-Party Parliamentary Group on Retail Crime

The NFRN is liaising with a number of MPs in an effort to establish an All-Party Parliamentary Group on Retail Crime (APPG). The purpose of the APPG will be to undertake enquiries, and establish more facts about the fall out of such violent crime, and how it affects businesses and the industry overall. The NFRN believes that government support regarding the establishment and of the work of such an APPG would mean that work undertaken to publicise violence in retail would be given a necessary boost to ensure change

319INCIDENTS OFVANDALISM

PER 1,000STORES

ONLY 9REPORTED INCIDENTS

OF FRAUDOUT OF 81,631

RESULTED IN SUCCESSFUL POLICE OR JUDICIAL

OUTCOMES


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The Illicit Trade Market

Illicit trade includes counterfeit and smuggled products. The illicit tobacco market contributes significant losses to legitimate retailers across the UK, with 49 per cent of smokers reporting to have seen the sale of an illicit pack of 20 cigarettes for less than £4.24 This is a staggering 66.6 per cent cheaper than the retail value, with the average price of a pack of 20 currently sitting at £10.40.25

In June 2017, the Tobacco Manufacturers’ Association surveyed 12,065 adult smokers in the UK to better understand their awareness, behaviour and attitudes towards illicit tobacco.26 The findings of these surveys are alarming and affirm NFRN members’ concerns about the negative impacts of the illicit tobacco market.

Proportion of smokerswho purchased tobacco from non-UK duty paid sources

Proportion of peoplethat reported the sale ofillicit tobacco

Proportion of smokers that think there are no sufficient deterrents dissuading people from purchasing illicit tobacco

Proportion of illicit tobacco buyers in the lowest income group

Proportion of smokers that said that increasing tobacco prices tempt them to buy tobacco that has not been subject to UK taxes

Smokers that agreed that the latest regulatory changes to tobacco packs made them more likely to purchase tobacco that was not subject to UK taxes

72.5 per cent

12 per cent

47 per cent

48 per cent

57 per cent

45 per cent

Consumers need to be informed of the greater dangers and implications that come with illicit tobacco; the health impacts due to counterfeit produce and the economic impact.

There is a lack of information to the general public surrounding the health risks for consumers of illicit tobacco.

Responses to the TMA Survey show that there is a clear desire for tougher punishments for offenders. Increasing penalties for repeat offenders, on the spot fines for those selling illegal tobacco, and making it mandatory for landlords to evict tenants who are caught trading in illegal tobacco would be steps to address the illicit tobacco trade.

This is a direct consequence of high taxation on tobacco products and strict tobacco legislation as it pushes consumers to the illicit market which is extremely harmful to legitimate retailers, the Treasury and consumer health.

Plain packaging legislation came into effect in May 2017, despite repeated warnings from packaging companies that this would erase distinguishing features from tobacco packs, therefore making them significantly easier to counterfeit.

A KPMG study revealed that after a similar measure was introduced in Australia, the sale of illicit branded cigarettes rose by 154 per cent.27

Key Findings NFRN RESPONSE

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Loss to the Exchequer

The tobacco tax gap is made up of the illicit markets in cigarettes and hand-rolling tobacco and it was estimated in 2016/17 that this cost was £2.5 billion, with £1.9 billion lost in tobacco duties and £0.6 billion in VAT.28 Around £31.6 billion of tax revenue has been lost because of the illicit market in spirits, beer, and wine, cigarettes, rolling tobacco and diesel between 2010-11 and 2014-2015 according to an analysis of HMRC by the TaxPayers’ Alliance.29 High taxes on alcohol and tobacco simply fuel a black market in illicit goods, meaning HMRC loses out. NFRN members are concerned by the lack of prosecutions and enforcement regarding illicit trade.

TMA Regional Illicit TobaccoSurvey 201730

Proportions of smokers buying non-UK duty paidtobacco products in different areas of the country

Impact on Communities

Retail crime not only impacts upon those who work in the businesses affected, it also impacts on the local communities which they serve. If an independent retailer is driven out of business by the cost that retail crime has on their business, then the local community loses out on the services of that shop and the variety that independent retailers bring to the high street. As well as the overwhelming cost retail crime has on retailers, the problem of losing staff is becoming an increasing concern. Staff that work in small shops are working in fear; not wanting to work late or work in the store at all due to the threat of being a victim of a robbery, abuse or even killed in their place of work.

All-Party Parliamentary Group on Illicit Trade

Parliamentarians at Westminster have formed a new cross-party group to move issues around the illicit trade up the political agenda. The All-Party Parliamentary Group, which is made up of Peers and MPs from across the political spectrum, looks at some of the key issues and drivers behind illicit trade across a range of sectors. The APPG explores both supply and demand and aims to bring fresh impetus and ideas to tackling such issues. A key focus is the impact of illicit trade on local businesses, high streets and communities.

We urge MPs and Peers to join the APPG on Illicit Trade and engage with an issue that impacts on so many, be it multinational corporations, local retailers, or the general public. The group looks to undertake a number of inquiries each year in order to deliver workable recommendations designed to assist government, law enforcement, the private sector and ultimately consumers in tackling illicit trade.

CHAIR AND REGISTERED CONTACTDr Matthew Offord MP, House of CommonsLondon, SW1A 0AATelephone: 020 7219 7083Email: [email protected]

PUBLIC ENQUIRY POINTIsabella Hunter-Fajardo, ConnectThird Floor, Millbank Tower,London, SW1P 4QPTelephone: 020 7592 9592Email: [email protected]

SCOTLAND

71%

NORTHERNIRELAND

72%

NORTH EAST ANDNORTH WESTOF ENGLAND

72%

WALES

66%

EAST MIDLANDSAND WESTMIDLANDS

68.5%

SOUTH EAST ANDSOUTH WESTOF ENGLAND

72.5%

LONDON

82%

The NFRN calls for: An investigation into the scale of the illicit trade market, especially tobacco, and the damage it causes legitimate retailers. Greater communication is needed between police, Border Force and HMRC when illicit tobacco is reported.

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12


Market FairnessATMs are becoming ever more important for the seamless functioning of society. This is especially the case since bank closure programmes have made access to cash increasingly difficult for consumers. In recent years, many bank branches in the UK have shut down. Although precise figures are disputed, a report from Which? suggests that as much as 16 per cent of the banking network closed between 2015 and 2017.31 As a result, consumers increasingly rely on ATM operators and retailers to provide access to their cash to spend on the local high street. However, recent changes in the business rate regime as well as plans to reduce interchange fees increasingly threaten the availability of free to use ATMs.

ATM Interchange Reduction Fee

LINK, the UK’s largest cash machine network, has recently announced that it will reduce interchange fees by 20 per cent over the next four years, from 25 pence per transaction to 20 pence.32 In the majority of cases, ATM providers devise their business model on income from the interchange fees paid by banks to allow their clients to access cash and other services provided by ATMs. The specific contract agreed between the retailer and the ATM provider determines the share of revenue the retailer will receive for hosting the machine, after servicing costs, cash replenishment, business rates and other maintenance costs are subtracted. Therefore, the profit a retailer makes from providing an ATM for their customers is subject to the usage of the machine, and the subsequent income received through interchange fee payments.

Many retailers are concerned that a 20 per cent decrease in interchange fees will undermine the commercial viability of offering the services of an ATM to their customers. Together with the costs of ever-increasing business rates, already a small change in terms could place retailers under severe financial strain, leading, ultimately, to a reduction of free to use ATMs.

This is detrimental to independent retailers, their customers, and local communities. The survival of many retailers and local high streets depends on the ability of their customers to access cash. ATMs hosted in local stores also benefit surrounding businesses and contribute to the local economy.

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Business Rates

In 2013, the government decided that “through-the-wall” ATMs would be liable to separate business rates. The move saw bills amounting to a total of £200 million sent to retailers, backdating to the start of the last business rates period in 2010.33 Previously, where an ATM was located in a larger business premise, the occupier of that premise would pay one set of business rates for the whole premise, including the ATM.

However, a 2017 ruling reaffirmed the government’s change of policy, now treating certain ATMs provided by third parties as separate sites, and thus requiring their own business rates. The ensuing bills for these “through-the-wall” ATMs, generally built into the front of a shop, are issued to the cash machine provider. Yet, in reality, rate-related costs are often contractually passed on to the retailer hosting the ATM.

These costs are estimated to amount to a whopping £206 million over the next five years under the current business rates regime.34 The new ATM business rates are calculated by using the number of annual transactions going through an ATM to estimate a “maintainable cash transactions” figure. This figure is then converted to a Rateable Value (RV).

Band Number of Maintainable Cash Transactions Rateable Value

A 0 – 2449 250

B 2500 – 4999 550

C 5000 – 9999 900

D 10000 – 14999 1300

E 15000 – 24999 2000

F 25000 – 49999 3750

G 50000 – 74999 5950

H 75000 – 99999 8300

I 100000 – 149999 11250

J 150000 – 199999 14000

K 200000 – 249999 18000

L 250000 – 299999 22000

For ATMs charging customers a small fee for its usage, the “maintainable cash transactions” figure is multiplied by three before the ATM is assigned an RV. Business Rent and Rate Specialists CVS have estimated that on average, operating an ATM will cost £2,800 in business rates.35

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The News Industry

Independent retailers are convenient by nature. They are the foundation of the UK retail sector; however, in a highly competitive marketplace (that is often non-regulated) this can come with burdens. The NFRN leads the fight against unfair business practices and for changes in the terms and conditions of doing business, which are often enforced without any agreement upon its retailers.

A particular area of concern is the newspaper and magazine marketplace. This is a market where the wholesale supply chain operates a duopoly system and in which retailers have no choice of supplier. Through one-sided contracts, retailers are burdened with ever-increasing costs for decreasing supplies, which – at the same time – come with significant reductions in trading margins.

Despite record consumer prices, newspaper retail margins have dropped by one third and this dissatisfaction is further compounded by shocking standards of service on a regular basis.

In 2017, NFRN Connect received 6,588 complaints regarding late, short, or missing deliveries. This is a great concern for independent retailers. Customers only need to come to their shop once or twice to find that the magazine or newspaper they want is not stocked before they turn to other stores, eventually forcing community stores to close. As newspapers are a main driver of footfall, it is no exaggeration to say that this poor service threatens their livelihood. A lost customer that usually buys a newspaper on a daily basis equals a loss of approximately £550 per year, on top of the financial loss of the occasional snack or coffee customers get when visiting the store to pick up their newspaper. A focus on saving millions of pounds by having fewer print sites, fewer distribution depots and less IT investment by publishers has resulted in a smaller number of customer-facing personnel and a reduction in consumer products. This, together with a total lack of transparency and poor governance, continues to blight a once-great industry. Publishers are still permitted to offer non-competitive and lucrative contracts to just two principle wholesalers, who control exclusive and vast geographical areas. Wholesalers subsequently have total power over the carriage charges they enforce onto their retailer customers and each is further reducing the retailers’ profits through regular and unwarranted carriage charge increases, often by ludicrous and unprecedented amounts.

Despite all this, and with competition from digital editions, newspapers and magazines continue to be part of society’s fabric and a principle reason behind many shopping visits to independent retail stores. Today, to offset declining sales volumes, newspapers have entered a period of unprecedented price increases and with an even greater decline in volumes of magazines sales, the time to act is now before it is too late. Each is still a footfall driver for independent retailers and whilst there have been substantial and justifiable changes within the newspaper and magazine marketplace, unfortunately for the retail sector, the decline has only made life considerably harder and far less profitable. Only through a market investigation will this imbalance change and products continue to be easily accessible to consumers.

IN 2017, NFRN CONNECT RECEIVED

6,588 COMPLAINTSREGARDING LATE, SHORT ORMISSING DELIVERIES

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It is the combined effect of escalating carriage charges, reduction in margins, and poor service that has led to a large number of independent news retailers being forced out and they have stopped selling news.

NFRN Complaints v’s Carriage Charge Comparison

RETAILCHARGES

INCREASED

25.85%OVER A 7 YEAR

PERIOD

IN 2017,

49%OF COMPLAINTS TO

NFRN CONNECT REGARDED LATE

DELIVERYTHERE ARE

22%FEWER LOCAL

WHOLESALE DEPOTS SUPPLYING

RETAILERS SINCE2011

87,819

COMPLAINTSTO

NFRN CONNECTSINCE 2010

6,588COMPLAINTSREGARDING

LATE, SHORT,OR MISSING

DELIVERY27%INCREASE

IN COMPLAINTSFROM 2016

TO 2017

9.6millionCOPIES RE-RUN

IN 2017(NEWSPAPER THAT ARE NOTDELIVERED AS SCHEDULED

ARE RE-RUN LATER INTHE DAY)

NFRN Connect Complaints

Smiths Max Carriage Charge

Late/Short/Missing Delivery Credit Issues

Menzies Max Carriage Charge

14,000 £65.00

£60.00

£55.00

£50.00

£45.00

£40.00

12,000

10,000

8,000

6,000

4,000

2,000

2010 2011 2012 2013 2014 2015 2016 20170

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Service Failings

As if a backdrop of continued margin cuts and excessive overcharging was not enough, a third element is also furthering the demise of news. In 2017, enough was enough and retailers took to the street to protest further against rising charges and poor service, all illustrating that unless intervention takes place, poor wholesale service will continue, thousands of complaints each week will persist and, unless change is enforced, these once fantastic products and the opportunity to receive news through readers’ letterboxes will disappear.

The Competition and Markets Authority (CMA) failed to investigate these inequalities within the news supply chain in 2012, and today the wholesaler duopoly with protected contracts unseen in any other markets remains unchallenged. Carriage charges continue to escalate, retail margins continue to be slashed and with a woefully inadequate service from news wholesalers, universal access to the press is now under greater threat than ever before.

In early February 2018 the Prime Minister personally announced a review to see whether state intervention was needed to protect the future of national and local newspapers. This move was welcomed by the NFRN who called for it to be widened so the whole newspaper supply chain was examined.

CASE STUDY

In August and September 2017, NFRN Connect experienced its busiest period to date.

After distribution depot restructuring by one of the wholesalers, coupled with a breakdown of their phone systems, independent retailers found themselves without the newspapers and magazines they had ordered and unable to contact the supplier about it. In just a few hours, calls to NFRN Connect peaked to over 200. Complaints about short supplies shot up to treble figures, and missing bundles of newspapers rose by 200 per cent. Many independent retailers lost their regular customers during that period by not being able to supply the desired newspapers and magazines. And yet, despite all these issues independent retailers have no choice but to continue with the same failing wholesaler without any possibility to demand changes or concessions.

Minimum Unit PricingIn 2012, the Scottish Parliament passed legislation paving the way for the introduction of a minimum unit pricing (MUP) for alcohol. Held up by legal challenges, the policy was only declared legal on November 15 2017 by the UK Supreme Court. The Scottish government now plans to introduce MUP on May 1 2018, at a preferred price of 50p per unit.

The NFRN strongly endorses the decision by the Scottish government. The NFRN is adamant that the biggest way in which anti-social behaviour can be combated is to introduce a minimum unit price, which will also have a positive impact on public health. Studies have estimated that a minimum price of 50p would reduce the number of alcohol-related deaths in Scotland by 392 within a period of five years, and decrease instances of hospital admissions by 8,254.36

Minimum unit pricing will set a basic price for a unit of alcohol and make it illegal to sell alcohol under the 50p per unit threshold. Rather than a tax, MUP is a targeted way of ensuring that alcohol is sold at a price beneficial to human health.

Alcohol profits in Scottish stores are expected to increase by as much as 70 per cent when minimum unit pricing will take effect this spring. More than one in five of the top 125 beer, cider, wine, spirits and pre-mix lines will need to raise their prices in line with MUP, with an average increase of £2. This could result in an increase of nearly £20,000 a year for the average retailer, reported the trade magazine Retail Express.37

The NFRN calls for: A review into the news wholesale distribution network to level the playing field and create fairness in a market that is dominated by a duopoly.

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For retailer Faisal Naseem of Premier Arbroath Party Time in Angus, the MUP would increase his profit after VAT by 70.4 per cent, adding a whopping £50,000 a year. “I feel better about it after seeing the stats”, he told Retail Express. “I think it will work to our advantage due to expanding our margins and blocking the current supermarket pricing strategy”. 38

The NFRN calls for: The government to ensure that retailers will not suffer the consequences of customers angered by higher alcohol prices. Protection measures are required and funds need to be made available to ensure the safety of retailers in public-facing roles.

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In addition to the positive impact on human health, MUP will create a more levelled playing field for independent retailers. The growing presence of supermarket chains in local areas has led to a decline in the retail sector, as independents have to contend with unachievable price cuts driving them out of business. Current own brand alcoholic drinks would have to increase their prices substantially. Sainsbury’s 2-litre bottle of own-brand dry cider, for example, currently sits at £2.35. Under a MUP of 50p, however, the cost of the cider would need to be £5. The MUP can help secure the future of the local shop.

Alcohol licensing is a devolved matter. Following the Scottish example, the Welsh Assembly has also introduced a Public Health (Minimum Price for Alcohol) (Wales) Bill in October 2017. Furthermore, in April 2017, the House of Lords Committee report on the Licensing Act recommended that if showing success in reducing excessive drinking in Scotland, MUP should also be rolled out in England.39

The NFRN supports a UK-wide introduction of minimum unit pricing. However, it has concerns regarding its impact on retail crime. MUP could drive crime rates as well as verbal and physical abuse of retailers working in public-facing roles.

Very often, independent retailers cannot afford the same level of security as supermarkets, despite investments in loss prevention measures such as CCTV, mirrors, panic alarms, and shutters, as well as placing high-value items in a secure location. Put simply, they do not have the financial capability to invest the same as large national chains, who have a physical security presence. The introduction of the MUP has the potential to add to the ever-rising number of violent incidents. Independent retailers, in particular, are vulnerable to anti-social behaviour due to their later opening times. Without physical protection and funds for further security measures, independent retailers could be the main target of costumers angered by the MUP.

Figure 1: Griffith, R., O’Connell, M. and Smith, K. (2017). Proposed Minimum Unit Price for Alcohol Would Lead to Large Price Rises. IFS Briefing note BN222 . Institute for Fiscal Studies, pp.1-7: 3.

Off-trade Average price % of units Average price Average % pricealcohol prices per unit of bought below increase for increase forAlcohol type alcohol 50 pence units priced units priced below 50 pence below 50 pence

Wine 48.8 62.2 8.8 23.5

Spirits 47.6 75.4 9.1 23.4

Lager 39.5 85.6 14.2 43.8

Cider 37.6 79.7 21.2 89.5

Beer 54.0 46.5 6.9 18.8

Sparkling wine 62.8 28.3 24.7 115.6and perry

Fortified wine 45.0 71.5 12.1 39.0

Alcopops 86.8 1.5 7.9 20.8

All alcohol 47.2 68.2 11.3 35.1

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Deposit Return Scheme

In September 2017, First Minister Nicola Sturgeon announced that Scotland would introduce a deposit return system (DRS) for used drinks cans and bottles. A one-way DRS usually involves an initial deposit added to the purchase price of a drink, which is then refunded when the container is returned to a collection point. If consumers decide not to return the used container, they will lose the deposit. The specific design for Scotland has yet to be finalised but is aimed at reducing large – and growing – amounts of litter ending up in the Scottish countryside and sea. Approximately 130,000 cans and plastic bottles are thrown away in Scotland every day, often ending up in the sea and not in designated kerbside facilities.40 Plastic pollution is harmful to both the environment and wildlife. Studies have determined that 100,000 maritime creatures and approximately one million birds perish every year due to littering – either through entanglement or by ingesting man-made debris after confusing it with food.41

Independent retailers have long called for a deposit refund scheme for plastic bottles and cans in Scotland and agreed to a proactive policy of engagement with like-minded stakeholders in a bid to increase recycling levels within Scotland. In March 2017, Gail Winfield, president of the NFRN in Scotland, said: “NFRN members are responsible retailers who want to play a role in protecting the environment and who recognise the damage that plastic bottles and cans can do to their surroundings. It’s for that reason we have agreed today to support the Scottish government’s aim of increasing the rate of recycling but we want to ensure that any schemes to achieve this are developed in co-operation with the independent retail sector.”

Research suggests that a deposit return scheme could cut litter by 18 million cans and 21 million bottles in Scotland.42 With such compelling evidence, the NFRN wants to proactively engage with like-minded stakeholders in discussion and debate, leading to an industry solution that will benefit, not hinder, independent retailers.

What’s more, with Westminster’s Environment Audit Committee also looking at the damage done to the environment thanks to today’s throwaway society, it’s clear that this is no longer an issue that is exclusive to Scotland.

For those reasons, the NFRN is calling for a UK-wide DRS.

According to the Department for Environment Food & Rural Affairs, the UK recycles just 37.9 per cent of its plastic waste and 24 per cent of its aluminium in 2014.43 Furthermore, in the 2015 European recycling league table, the UK ranked only tenth among municipal waste recyclers in Europe. Leading the table was Germany, with an overall recycling rate of 66.1 per cent. 44

Apart from plumbing recycling rates, the NFRN is also concerned about the impact a DRS in Scotland alone could have on the cross-border flow of materials. If DRS schemes, and required deposits, are implemented unevenly across the UK, empty bottles could become a form of currency, encouraging people to cross borders to make money.

At the 2017 Conservative Conference, Environment Secretary Michael Gove launched a call for evidence on how deposit return schemes for plastic, metal and glass drinks containers could reduce England’s waste. Additionally,

Ministers have asked the Voluntary and Economic Incentives Working Group, established as part of the UK’s Litter Strategy, to accelerate its research and present its work in early 2018.

The NFRN calls for: A UK-wide deposit return scheme and is committed to proactively engage with like-minded stakeholders and the government to devise an industry solution that works for everyone.

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Employment and AdministrationWhilst the NFRN is sympathetic to calls to increase the National Living Wage, our members cannot easily absorb these and they hinder their business growth.

National Living WageThe impact that the National Living Wage has on micro-businesses has not been anticipated by the government. It is important that the government and the Low Pay Commission consider the financial burden this places on independent retailers and provide support.

In a five year period, the wage level of those over the age of 25 has increased by 21 per cent from £6.19 to £7.50 in 2017, with a planned increase to £7.83 in April this year. The increase will see an annual pay rise of £600 for full-time workers who do a 37.5-hour week.

Despite planning well in advance, many retailers still find it difficult to accommodate continuing increases. Additionally, this April’s increase coincides with other challenging and costly policies affecting independent retailers. One such policy is the rollout of workplace pension auto-enrolment. Many independent retailers had to outsource auto-enrolment and payroll, adding to the already high cost resulting from minimum employer contributions. It is also worth noting that there will be further increases to the minimum contribution required by employers – rising from 1 per cent to 2 per cent in April 2018 and to 3 per cent in 2019. As such, increases in employer minimum contribution for AE and the NLW increases will both take effect at the same time. Apart from increasing costs arising from government policy, there are also wider economic pressures affecting retailers’ businesses, including the spike in inflation and slumping consumer spending.

A 2017 report for the Low Pay Commission, prepared by Incomes Data Research, highlighted the worrying responses of employers to increases of the NLW.45 The report’s findings were based on a survey of 120 employers, across all low-paying sectors. More than half of respondents (55 per cent) stated that they had increased the prices of their products over the past year, with 67 per cent of respondents linking this directly to the NLW. Headcount reductions also featured very prominently across the retail sector, with 36 per cent of respondents citing NLW as a major factor, and 37 per cent of respondents naming it as one factor in workforce cuts.46

These findings have been confirmed by research carried out by the Federation of Small Businesses (FSB).47 A staggering 64 per cent of small businesses affected by the NLW have stretched to meet the new increases by taking lower profits. Reportedly, two in five small businesses (39 per cent) have increased their prices to cope with rising employment bills. A further quarter (24 per cent) needed to cancel or downsize their investment plans, and a fifth have reduced staff hours (22 per cent) or employed fewer workers (19 per cent).48

In 2015, the Office for Budget Responsibility warned that there would be a loss of 60,000 jobs as a direct result of the introduction of the National Living Wage as well as working hours reduced by four million per week.49 The new increases of the National Living Wage will only accelerate this process.

Wage level of over 25’splanned to increase to

in April 2018£7.83

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The NFRN calls for: The government to review the impact that the Living Wage and auto-enrolment have on small and micro businesses and to assess the level of increases scheduled.!

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Licensing

The NFRN calls for a review into the licensing system currently operating in the UK and devolved areas. In an NFRN survey on Red Tape, an overwhelming number of retailers cited licensing as the piece of red tape which abolishment would help their business the most.

Depending on the nature of the business, retailers can be subject to a number of licences and inspection regimes. The licences retailers need to apply for are many, and varied. There is a licence for almost everything – from playing background music in business premises to selling alcohol and for putting advertising signs on the road or pavement, to a licence for public space surveillance (CCTV), plus many more. Licences can range from the permission to process personal data in an automated form to the permission for coffee shops to place tables and chairs outside their premises.

The process of applying for licences is made even more convoluted by the fact that licensing is a devolved matter, so retailers in Scotland will need to apply to a different authority than retailers in England.

Not only is the current licensing regime, requiring applications for different licences to different authorities, time-consuming and an administrative burden for many retailers, it is also very costly.

Application fees can range from £100 to £1,905, based on the rateable value of the property the licence(s) is needed for.50 Furthermore, additional fees can be charged in instances of theft or loss of the licence, applications to transfer a premise licence or notifications of change of name or address.51

Pension Auto-Enrolment

Auto-enrolment continues to be an issue for many independent retailers. Whilst everyone should plan for the future, auto-enrolment has added further burdens and costs in an already over-regulated market. Many independent retailers have had to outsource pension auto-enrolment and payroll due to the burden it brings as well as complexity issues – however, this has significantly increased their operating costs and accountancy fees.

Yes

No

0

NoFrequency 6

Frequency

YesFrequency 52

15 30 45

Does your business suffer from excessive ‘red tape’ or bureaucracy from government or your local council?

Customer AccessibilityOne of the biggest challenges for small businesses located in town centres and on the High Street is customer accessibility. When a business is hampered by lack of parking or lengthy road works, it can seriously impact a small retailer’s business and can even lead them to close altogether.

Parking

Small independent retailers suffer greatly on the issue of parking, especially in comparison with supermarkets and growing out-of-town developments. With parking supply already an issue in many town and city centres, small businesses are feeling the impact. The cost of parking is driving business away from the High Street and its independent retailers. To park centrally in town centres members of the public across the country can expect to pay more than £10 for a few hours and very limited spaces for short-term parking. This cost drives customers to seek free and easy-access parking, mainly in out-of-town business parks or supermarkets instead or encourages customers to shop online, which severely damages the traditional High Street.

According to the British Parking Association’s survey into the factors that dictate a driver’s choice of a car park, the top five factors were; Location, Personal Safety, Safe Environment, Tariffs and Ease of Access.52 2017 witnessed a record parking fee intake for Councils, with £819 million taken, 10 per cent up from the previous record of £744 million in 2016.53 This is £37 million more than what councils themselves had predicted for 2016-17.54 In total, the 353 local authorities in England generated £1.582 billion from parking charges and penalty fees – up 6 per cent year-on-year.55 The biggest profits were generated in London, which 33 boroughs made a staggering £379 million between them, accounting for almost half of the English total. Record numbers were also reported by Brighton & Hove (£21.2 million), Milton Keynes (£11.1 million), and Birmingham (£11.1 million).56

Across the UK, the numbers of affordable and accessible parking spaces are in decline, but councils across the country are reporting record levels in parking intake as a result of high tariffs.

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In Total 353local authorities in England

£1.582 billionfrom parking charges and penalty fees

PARKINGPROBLEMS

CAN SERIOUSLYIMPACT A SMALL

RETAILER’SBUSINESS

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60%

Road Works

British authorities are not investing in the country’s roads and highways. Instead, they are directing money to rail projects such as HS2 and Crossrail, spending almost nine times as much on rail networks than road infrastructure per mile.57 A 2017 report from the World Economic Forum found that Britain is ranking only 27th on the planet when it comes to the quality of roads, trailing countries such as Ecuador, Malaysia, and Namibia.58 This comes despite the fact that the UK is a top five economy.

“By comparative European standards, Britain’s roads are far off the pace, and the country’s road infrastructure ranks amongst the lowest in major developed economies. The cost of this, in lost time and unreliability, is huge”59 , a Centre for Economic and Business Research report commented on the findings. The cumulative cost of congestions caused by poorly maintained roads is estimated to be as high as £307 billion from 2013 to 2030.60

This impacts disproportionately on independent retailers. Especially in small local communities, road quality is lacking and consumers favour newly developed, easily accessible out of town outlets and supermarkets for their shopping after a long day of work. This comes on top of an increasing number of late deliveries caused by traffic congestions. Councils need to make available more funds for road works and maintenance. Yet, this cannot come at the cost of the independent retailer, which has happened too many a time.

Throughout the UK, road works are missing their completion targets which have a significant impact on many small businesses but in particular the retail industry. Independent retailers know their customers as they are an integral part of their local community. When a customer’s route to their convenience store has been impaired due to road works, they will go elsewhere. Independent retailers can report declines in sales by as much as 60 per cent during road work periods. With escalating business costs, the last thing retailers need is the access to their business to be severely hampered with no route to their business and cutting off trade and deliveries.

Small businesses have to jump through hoops to get the compensation they are rightly entitled to from utility companies and there is no compensation for the damage caused by highways maintenance works. A long-term strategy that does not hurt independent retailers and their customers in the meantime is desperately needed.

The NFRN calls for: A change in policy to ensure local businesses directly impacted by road or utility maintenance get a proportionate business rate refund or are adequately compensated by utilities and county councils, depending on the nature of the works.

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References1 ONS. (2017). Crime in England and Wales: Year Ending June 2017. ONS, pp. 1-60: 29.2 British Retail Consortium. (2017). 2016 Crime Survey. British Retail Consortium, pp. 1-17: 6.3 Home Office, 2017, op cit: 9.4 Ibid.5 British Retail Consortium, 2017, op cit: 10.6 Ibid: 16.7 BBC. (2017). ‘Not Practical’ for Met Police to Investigate All Crime. BBC. (16th of October). 8 Metropolitan Police. (2017). DAC Mark Simmons Discusses the Crime Assessment Policy. Metropolitan Police. (16th of October). 9 Simpson, J. (2017). Police Will Not Attend Shoplifting Incidents. The Times. (1st of December). 10 Ibid. 11 Ibid.12 USDAW. About Freedom From Fear. USDAW.13 Allen, T. and Rudkin, E. (2017). An Analysis of Abuse and Violence Towards Retail Staff when Challenging Customers for ID. Under Age Sales, pp.1-32: 1-32.14 Ibid: 4.15 Office for National Statistics. (2017). Crime in England and Wales: Year Ending June 2017. Office for National Statistics. 16 Ibid.17 Travis, A. (2017). Crime Rise is Biggest in a Decade, ONS Figures Show. The Guardian. (20th of July).18 Retail Against Crime. (2017). About. Retail Against Crime. 19 Home Office. (2017). Crime Against Businesses: Findings from the 2016 Commercial Victimisation Survey. Home Office, p. 1-69: 4; NFRN. (2017). Independent Retail Report 2017. NFRN, pp.1-33: 11.20 Home Office, 2017, op cit: 16.21 Warrell, H. (2014). Police Urged to Crack Down on UK Business Crime. Financial Times. (23rd of July).22 National Audit Office. (2017). Online Fraud. National Audit Office, pp.1-46: 7.23 Crow Clark Whitehill. (2017). Annual Fraud Indicator 2017. Crow Clark Whitehill, pp.1-24: 3-4.24 Tobacco Manufactures’ Association. (2017). TMA Smokers’ Anti-Illicit Trade Survey 2017: Attitudes, Awareness and Understanding. Tobacco Manufacturers’ Association, pp.1-8: 5.25 Smith, M. (2017). How Much Have Cigarettes Gone Up After the Budget 2017? It’s the Biggest Price Increase Ever. The Mirror. (24th of November). 26 Ibid: 1-8.27 KPMG. (2013). Illicit Tobacco in Australia. KPMG, pp.1-77: 28.28 HM Revenue & Customs. (2017). Measuring Tax Gaps 2017 Edition. HM Revenue & Customs, pp.1-7: 2.29 Price, J. (2016). Tax Gap: How Cracking Down on Illicit Trade Could Fund a 1p Cut in the Basic Rate of Income Tax. The Tax Payers Alliance, pp.1-4: 1.30 Tobacco Manufacturers’ Association, 2017, op cit: 3.31 Calver, T. (2017). Mapped: The 482 Bank Branches Closing in 2017. Which?.32 LINK. (2017). LINK Proposals for Funding the Free ATM Network. LINK.33 Jahnshan, E. (2017). Court Rules “Hole in the Wall” ATMs Must Pay Separate Business Rates Bill. Retail Gazette. (21st of April).34 Ibid.35 Ellson, A. (2017). Free Cash Machines at Stores Under Threat After Rates Ruling. The Times. (21st of April).36 Scottish Government. (2017). Minimum Unit Pricing of Alcohol. Scottish Government, pp.1-13.37 Courtez, J. (2017). Booze Bonanza. Retail Express. (28th of November), p.1.38 Ibid.39 House of Lords. (2017). The Licensing Act 2003: Post-Legislative Scrutiny. House of Lords, pp.1-184.40 Amos, I. (2017). Nicola Sturgeon Announces Can and Bottle Deposit Return Scheme. The Scotsman. (5th of September)41 Parker, L. (2015). Nearly Every Seabird on Earth Is Eating Plastic. National Geographic. (2nd of September), UNESCO. (No Date). Facts and Figures on Marine Pollution. UNESCO; Ocean Crusaders. (No Date). Plastic Statistics. Ocean Crusaders.42 Amos, 2017, op cit.43 Department for Environment Food & Rural Affairs. (2016). UK Statistics on Waste. Department for Environment Food & Rural Affairs, pp.1-24: 19.44 European Environment Agency. (2017). Recycling of Municipal Waste. European Environment Agency. 45 Incomes Data Research. (2017). The National Living Wage: Employers’ Responses to the 2017 Increase. Incomes Data Research, pp.1-104.46 Ibid.47 FSB. (2017). Small Business Owners Stretching to Meet National Living Wage Costs. FSB. (4th of August 2017).48 Ibid.49 Office for Budget Responsibility. (2015). Economic and Fiscal Outlook. Office for Budget Responsibility, pp.1-215: 204.50 HM Government. (2017). Premises Licence (England and Wales). HM Government.51 HM Government. (No Date). Additional and Other Fees. HM Government. 52 British Parking Association. (2014). In-Town Parking: What Works?. British Parking Association, pp. 1-54: 11.53 RAC Foundation. (2017). English Councils Parking Profits Up Ten Percent. RAC Foundation. (27th of November). 54 Ibid.55 BBC. (2017). Councils Make £819 From Parking Charges, Says RAC Study. BBC. (27th of November).56 RAC Foundation. (2017). Local Authority Parking Operations Revenue Outturn for England. RAC Foundation, pp.1-16.57 Centre for Economics and Business Research. (2017). The Economic Effect of Road Investment. Commissioned by the FairFuelUK Campaign, pp. 1-38: 4.58 World Economic Forum. (2017). Quality of Roads. World Economic Forum.59 Centre for Economic and Business Research, 2017, op cit: 31.60 Ibid: 5.

If you have any queries, to arrange a meeting or to visit your local independent retailer, please contact the NFRN Public Affairs Team below:

NFRNYeoman House Sekforde Street London EC1R 0HF Tel: 020 7253 4225Email: [email protected]

Documents

INDEPENDENT RETAIL REPORT 2018 - NFRN · of items stolen was £237, compared with a median value of £500 today.3 This cost is escalating year-on-year, with a 60 per cent increase