Supermarkets may soon have the chance to extend their Sunday trading hours as part of a potential government reform initiative. Currently, large stores in England are limited to operating for six hours between 10am and 6pm on Sundays, with closures mandated on Easter Sunday and Christmas Day. However, smaller shops under 280 sq metres are not subject to these restrictions and can open at any time on Sundays.
According to reports from The Grocer, discussions around relaxing Sunday trading regulations have surfaced informally among Treasury sources. This comes amidst a backlash faced by the Labour party over upcoming business rates reforms. The government recently passed a bill enabling the introduction of a higher business rate multiplier for properties with a rental value exceeding £500,000, with the aim of supporting reduced rates for smaller businesses.
While the possibility of changes to Sunday trading rules remains uncertain, a source cited by The Grocer emphasized that previous attempts at reform faced challenges and varying levels of support within the retail sector. Factors influencing the decision-making process include concerns about maintaining the special nature of Sundays under the Conservative party and potential opposition from unions under Labour.
Businesses are also grappling with increased costs following the recent hike in employer National Insurance rates from 13.8% to 15%, along with a reduction in the earnings threshold. Additionally, minimum wage rates have risen, with hourly wages for workers aged 21 and over now at £12.21, £10 for 18 to 20-year-olds, and £7.55 for under-18s and apprentices.
Several major supermarket chains, such as Tesco, Asda, and Sainsbury’s, have jointly addressed Chancellor Rachel Reeves in a letter, warning of the adverse effects of escalating costs, including potential job losses, higher inflation, and store closures. The government has defended these fiscal measures as necessary to safeguard public services, affirming that the minimum wage increase will particularly benefit younger workers and apprentices.