Supermarkets may soon have the opportunity to extend their Sunday opening hours as discussions among government officials suggest potential changes to current regulations. Presently, larger stores in England are limited to operating for six consecutive hours between 10am and 6pm on Sundays, with mandatory closures on Easter Sunday and Christmas Day. In contrast, smaller shops under 280 sq metres are not subject to these restrictions and can trade at any time on Sundays.
Reports from The Grocer indicate that there have been informal talks within Treasury sources regarding a potential relaxation of Sunday trading rules. This comes as Labour faces criticism over upcoming business rates reforms. The government has recently passed a bill allowing for a higher business rate multiplier on properties with a rental value exceeding £500,000 to fund reduced rates for smaller businesses.
While the possibility of changes to Sunday trading rules is being floated, there is no certainty that such alterations will materialize. Previous instances have shown a similar pattern of discussion with varying outcomes, with retailers expressing both support and opposition to the idea. The Conservative party has historically favored maintaining the special nature of Sundays, while potential opposition from unions could be a challenge for Labour.
Furthermore, businesses are grappling with increased costs following the National Insurance rate hike for employers from 13.8% to 15% and a reduction in the earnings threshold from £9,100 to £5,000. Additionally, minimum wage rates have been raised, with hourly wages increased for workers aged 21 and over, those aged 18 to 20, and under-18s and apprentices.
Several major supermarket chains, including Tesco, Asda, and Sainsbury’s, have jointly addressed Chancellor Rachel Reeves in an open letter, warning of possible job losses, higher inflation, and store closures due to rising costs. The government has defended these tax adjustments as necessary to protect public services, emphasizing that the minimum wage increase will particularly benefit younger workers and apprentices.