In Wednesday's UK budget, Chancellor Rachel Reeves unveiled new measures to tackle retail crime, aiming to provide relief to a sector increasingly plagued by theft and anti-social behaviour. Central to these measures is the repeal of the ‘£200 rule’, which previously treated shoplifting of goods under £200 as a minor offence. This change, coupled with increased funding to target organised crime gangs, has been met with approval from independent retailers and security advocates. However, rising costs driven by new wage and tax changes mean that small retailers face another tough year ahead.
Retail and Community Crime Prevention Partnership, Catch a Thief UK's CEO Farrah McNutt who has been working with independent family run retailers since 2014 said that " My retail members support the governments new proposed measures to reduce theft and violence in retail outlets. The £200 threshold should never have been introduced in the first place as this has been seen by criminals as a green light to steal goods from retailers big and small."
McNutt also said, "Its not as simple, 'although a good start', as removing the £200 limit. Theft from retail outlets is a complex issue with many types of shoplifters and many different reasons why they are stealing. What is needed is a muilty pronged approach to tackle retail crime also tackling the root causes and other social issues that contribute to retail and other crimes in our communities. There are lots of things retailers can do to assist the police with their enquiries, such as collecting and storing any evidence captured by CCTV. Many retailers have problems saving vital evidence, quite often there is no CCTV available as CCTV systems are set to overwrite any captured footage after a set time period, my organisation can help with this. Farrah also says, "there are other things retailers can utilise such as upgrading your CCTV system, Installing theft detection technology, facial recognition, public appeals, body worn video and audio cameras and audio warning announcement systems". "It is also very important to employ staff who are trained in theft detection, de-escalation, detention and overall crime prevention which my organisation can also provide the training".
"Theft is theft no matter the reason but we must also be mindful and take the nessesery action to reach out to those in our communities who are in genuine need and want to receive the help and support that's available".
The Federation of Independent Retailers (the Fed) voiced cautious support for the government’s focus on retail crime. A recent survey highlighted that 91% of independent retailers called for more police patrols, while 90% advocated for tougher penalties for shoplifters. The budget’s commitment to address these concerns comes as shoplifting reaches record levels, impacting communities, retail staff, and security teams across the country. However, the sector remains wary of escalating operating costs, which could pressure businesses already struggling to balance rising expenses and falling foot traffic.
Retail Crime Crackdown: A Welcome Relief for Shop Owners and Communities
In her budget announcement, Reeves confirmed that the £200 threshold for shoplifting which treated theft under this amount as “low-value” will be scrapped. Introduced under the Anti-Social Behaviour, Crime and Policing Act 2014, the policy has often left independent retailers feeling vulnerable, as shoplifters frequently exploited it without fear of repercussion. Professor Emmeline Taylor recently testified that the law effectively gave offenders a “license to steal,” a sentiment echoed by the many retailers calling for change.
The pledge to confront organised retail crime and increase policing comes alongside the government’s National Business Crime Centre’s Safer Business Action Week, which engaged businesses and police in targeted anti-theft patrols and community outreach efforts. “The Chancellor’s commitment to tackling shop theft will be warmly welcomed by our members,” said James Lowman, CEO of the Association of Convenience Stores (ACS), who emphasized the need for real action.
Independent Retailers Brace for Rising Costs Amid Wage Increases
While the crackdown on retail crime is a positive step, Reeves’ budget introduces additional challenges for small businesses, notably through a 6.7% increase in the National Living Wage (NLW), bringing the hourly rate for workers over 21 to £12.21 by April 2025. The national minimum wage for younger workers will also rise, with those aged 18-20 seeing a 16.3% increase, and 16-17-year-olds receiving an 18% increase.
Though these changes support millions of UK workers, small business owners fear it could add significant strain. Mo Razzaq, national president of the Fed, acknowledged that small businesses are already stretched to the limit. “While we want to pay a fair wage, the jump to £12.21 is a step too far for hard-pressed retailers, who now face additional national insurance and pension costs,” Razzaq said. According to the ACS, wage increases alone are expected to cost the sector £513 million next year.
Beyond wages, businesses will see employers’ National Insurance Contributions (NIC) increase by 1.2% to 15%, with the threshold lowered from £9,100 to £5,000—further adding to employer costs. This means that convenience stores could shoulder an extra £85 million in national insurance expenses next year, pushing many to reduce staff hours or eliminate positions altogether. Razzaq warned, “Independent retailers are often community anchors. With rising costs, many will struggle to keep their doors open.”
Alcohol and Tobacco Duty Increases Add to Retailer Pressures
For independent retailers, the Chancellor’s budget also imposed higher duties on hand-rolling tobacco, vaping liquids, and alcohol. Razzaq argued that these tax hikes could encourage consumers to turn to the illicit market, harming legitimate businesses. “Rising tobacco prices lure smokers to illegal sources, hurting retailers and damaging communities. The government must do more to curb the illicit trade and protect legitimate businesses,” Razzaq urged.
A Mixed Response to Business Rate Relief and Support Measures
Some measures in the budget offer relief. The Chancellor announced the freezing of fuel duty and retained the 75% rate relief for retail, hospitality, and leisure sectors, while confirming an increase in the Employment Allowance to £10,500, which helps offset NIC costs for smaller businesses.
However, ACS CEO Lowman noted that relief would not apply equally across the UK’s 50,000 convenience stores. “Small retailers with low NIC bills and lower property values will benefit, but larger stores, chains, and multi-site businesses will receive limited support. This uneven impact limits their ability to reinvest and serve their communities,” Lowman stated.
Despite the challenges, the ACS and the Fed have expressed willingness to support the government’s new strategy to curb retail crime, hoping that stronger enforcement and more frequent police presence can deter offenders and safeguard local businesses. The collective response underscores the importance of a balanced approach to budgeting that recognises the contributions of small retailers while ensuring that they remain viable in an increasingly competitive landscape.
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