Under current rules, large shops over 280 sq metres in England can only open for six consecutive hours between 10am and 6pm on Sundays and must close on Easter Sunday and Christmas Day
Supermarkets could be allowed to stay open for longer on Sundays under a shake-up that is reportedly being discussed by ministers.
Under current rules, large shops over 280 sq metres in England can only open for six consecutive hours between 10am and 6pm on Sundays and must close on Easter Sunday and Christmas Day.
Smaller shops under 280 sq metres are exempt from these restrictions and can open any time on Sundays.
The Grocer reports that relaxing Sunday trading rules has been informally broached by Treasury sources, as Labour faces backlash over business rates reforms that are expected to happen next year.
Ministers have passed a bill which allows them to introduce a higher business rate multiplier on properties with a rental value of £500,000 or more. The idea is that this would fund cheaper rates for smaller businesses.
One source told The Grocer that there is no guarantee that any changes to Sunday trading rules will go ahead. They said: “At the moment there are no firm plans – it’s much more a case of people flying kites.
“We’ve been down this path at least three times before and each time we have seen a similar pattern of events and the same outcome. There will be some retailers who are strongly in favour of this and others opposed.
“Under the Conservatives perhaps the deciding factor for the plans not going ahead came from those in the party who wanted Sunday to be kept special. With Labour the big fly in the ointment is likely to be the unions.”
Businesses are also facing higher costs after the rate of National Insurance paid by employers was hiked from 13.8% to 15% in April, while the earnings threshold was lowered from £9,100 per year to £5,000.
On top of this, minimum wage has also gone up. The minimum wage for workers aged 21 and over has risen from £11.44 an hour to £12.21 an hour, from £8.60 an hour to £10 an hour for those aged 18 to 20, and from £6.40 an hour to £7.55 an hour for under-18s and apprentices.
Many large supermarket chains, including Tesco, Asda, and Sainsbury’s, have signed an open letter to Chancellor Rachel Reeves, warning that rising costs would result in job losses, higher inflation, and shop closures.
The government has previously said the tax rises were needed to avoid cuts to public services, and the rise in the minimum wage would provide a bigger boost for younger workers and apprentices.
