The Vending and Automated Retail Trade Association (AVA) has written to the Chancellor of the Exchequer, Rachel Reeves, raising significant concerns relating to the recent budget.
The changes in employer NICs, combined with the increase in the national minimum and living wage levels, is estimated to cost the sector £39 million. The vending industry, which is predominantly comprised of SMEs classed as “small” under Defra and Treasury definitions, will see huge hits to their business costs exceeding £100,000 per company. This is also coming at a time of rising costs across the board with fuel, energy, ingredients, shipping and more. The AVA is calling upon the Government to reconsider the changes to the NICs threshold and explore alternative measures that support businesses, rather than hinder them, while maintaining the shared commitment to economic recovery and inclusive growth.
David Llewellyn, Chief Executive of the AVA, said: “The budget decisions from the Chancellor shared earlier this month have the potential to stifle small business across the UK including the vending and automated retail sector, impacting jobs and growth opportunities across the UK. While we appreciate the Government’s ambition to deliver growth that benefits all, these changes undermine this very desire.“As the trade body for the industry, we must protect and represent our members. After hearing the Chancellor’s budget speech, we knew we needed to speak for our members on the greater long-term consequences of these changes. We hope that the Chancellor will therefore reconsider the changes implemented from this season’s Budget.”
Signed by the full AVA Board, the letter to the Chancellor outlines why the new costs will make job losses unavoidable and inflationary price increases inevitable. The letter is available on the attached. For more information on the AVA, please visit the website.
