More than four in five retailers (82%) believe the UK Government has broken its promises to support small businesses, a JTI survey has revealed.
Rising business rates, an increase in National Insurance contributions, the proposed generational smoking ban and minimum wage increases have left 70% of retailers feeling “disillusioned” by the actions of the Labour Government towards small businesses since they came into power in July 2024. In fact, 85% of retailers think it will be harder for their business to succeed in 2025 as a result of the new laws and policies proposed.
When it comes to the proposed generational smoking ban, 71% of those surveyed agree that the Labour Party has not listened to the views of independent retailers on this topic.
Overall, 58% of retailers believe the generational smoking ban would have a negative impact on their store, up 15% from when the same question was asked in September 2024.
The survey highlighted retailers’ concerns about the implementation of a generational smoking ban, with 84% stating it would lead to loss of income through lost tobacco sales and 66% believing it would result in a loss of income because of illicit tobacco sales.
The rise of Illicit tobacco sales is a growing threat to many retailers, with 87% agreeing that the proposed generational smoking ban would lead to more illicit tobacco activity in their local area.
Over half (55%) also think the generational smoking ban may lead to them reducing staff numbers, with 31% stating the legislation could impact their opening hours.
Sarah Connor, Communications Director at JTI UK, said: “These results are a clear indicator of retailers’ disappointment with the government’s actions when it comes to the Tobacco and Vapes Bill. Throughout this process, the views of the very retailers who would be expected to enforce this legislation have not been listened to, leaving many disillusioned with those in power and concerned for their future livelihoods. In fact, as a result of the proposed generational smoking ban and other initiatives, 78% of retailers do not think that the Labour Government has their best interests at heart.”
Two prominent retailers, Avtar Sidhu and Nishi Patel, have also expressed concerns regarding the proposed generational smoking ban:
Avtar Sidhu, Budgens, Kenilworth, said: “The way retailers have been treated throughout this whole process is a real shame. We understand the need for tobacco legislation, but I don’t think that the views of retailers have been truly considered at any point when it comes to the proposed generational smoking ban. This will be really challenging for us to enforce in store and will likely cause more friction and abuse at the tills for me and my staff.”
Nishi Patel, Londis, Bexley Park, said: “Despite this government claiming to back small businesses, we independent retailers are under more pressure than ever before. My main concern around the proposed generational smoking ban is that it will simply push people towards the illicit market – this will be another blow to the revenues of retailers and lead to more crime in our local area.”
Discussing the threat of illicit tobacco, Connor added: “We welcome the government’s recent funding boost for Trading Standards, but it falls far short of addressing the growing threat of illicit tobacco. Half of the retailers who were surveyed believe the funding will not be enough to reduce illicit tobacco.
“The proposed generational smoking ban will only play into the hands of illegal tobacco operators and will negatively impact on thousands of small convenience businesses across the UK. We urge the government to reconsider its approach and focus on tackling the root causes of the illicit trade rather than implementing a generational smoking ban.”
