Chancellor John Healey has removed business rates relief for vape shops and adult gaming centres in today's UK Government Budget, a move that hits scores of shops in Ayrshire and beyond. The announcement comes just four weeks after a new tax on vaping liquid came into force, adding to the financial pressure on proprietors.
"I will carve out adult gaming centres and vape shops from business rates reliefs," Healey told the Commons, as part of the package paying for business rates cuts for other shops, restaurants and gyms.
New vaping duty adds to costs
The loss of rates relief follows the introduction of the Vaping Products Duty on October 1, which adds £2.20 for every 10ml of vaping liquid. The Government says it is a commercial decision whether that cost is passed on to retailers and customers.
Shane Margereson, founder of Ecigone, a five-time award-winning UK online vape shop, said: "Vapers have already seen prices go up since the new duty started on 1 October, and losing rates relief adds another cost for high street vape shops on top of that.
"Most of these are small local businesses helping adults move away from cigarettes, so the worry is that higher costs for legal shops make illegal vapes look cheaper by comparison.
"My advice to vapers is to shop around, stick to UK-registered sellers and think about switching to a refillable kit, which usually works out cheaper over time than prefilled pods."
Energy payments for households
There was also some respite for hard-pressed families across the UK in Healey's budget. Around 20 million households will get a £100 payment towards their energy bills this winter after the Chancellor announced the cash relief.
"This winter, for 20 million households in council tax bands A to D, I'm announcing a £100 energy payment for households. Paid directly into people's bank accounts to deal with rising energy bills," Healey told the Commons. He said the £2.6 billion scheme would "take the pressure off in the coldest months and see people through to the spring."
Scotland, Wales and Northern Ireland will get their share of the money, and Healey called on their governments "to do the same".
"A £100 payment straight into your bank account is real help in the coldest months, and keeping VAT off electricity until July comes off your bill automatically," said Dawn Yates, of electricity bill experts at Ex felon assistance.
Other Budget measures
Some other highlights from today's budget see VAT stay off electricity bills until July, the removal of Gas standing charges, 5p fuel duty cut to remain until July and Cash ISA limits remaining at £20,000.
The national minimum wage and the national living wage will both rise by 3.9 per cent too, which Healey said would help 2.3 million of the lowest paid workers.
