A survey of 1,000 independent retailers found 82% believe the Labour government has broken its promise to support small businesses amid rising costs and new legislation.

The survey, commissioned by JTI, revealed rising business rates, increased National Insurance contributions, minimum wage hikes and the proposed generational smoking ban as the main concerns for retailers.

Findings showed 70% of retailers felt “disillusioned” by the actions of the Labour government since it took office in July 2024. Additionally, 85% said new laws and policies would make it harder for their business to succeed in 2025.

Concerns over smoking ban impact

When asked about the proposed generational smoking ban, 71% said the government had not listened to the views of independent retailers. Overall, 58% of retailers believe the ban would have a negative impact on their store, up 15% from when the same question was asked in September 2024.

Meanwhile, 84% said the generational smoking ban would lead to lost income from tobacco sales, while 66% believed it would cause further losses due to illicit tobacco sales.

Furthermore, 87% felt the proposed ban would increase illicit tobacco activity in their local area. Over half (55%) believed it could lead to reduced staff hours, while 31% said the legislation might affect their opening hours.

Retailers to struggle enforcing generational smoking ban

‘Retailers have been overlooked’

Sarah Connor, communications director at JTI UK, said the survey results were a “clear indication” of retailers’ disappointment with the Tobacco and Vapes Bill.

She added: “Throughout this process, the views of the very retailers who would be expected to enforce this legislation have not been listened to, leaving many disillusioned with those in power and concerned for their future livelihoods.

“In fact, as a result of the proposed generational smoking ban and other initiatives, 78% of retailers do not think that the Labour Government has their best interests at heart.”

Connor also warned that the £10m government funding for Trading Standards “falls far short” of tackling the “growing threat of illicit tobacco,” with half of retailers surveyed believing the funding would be insufficient to curb the problem.  She said the ban would negatively impact “thousands” of small convenience businesses across the UK.

“We urge the government to reconsider its approach and focus on tackling the root causes of the illicit trade rather than implementing a generational smoking ban,” she added.

Impact on retailers

Avtar Sidhu of Budgens St John’s in Kenilworth described the proposed generational smoking ban as “really challenging” to enforce and said it would likely cause more friction and abuse at the tills for staff.

“The way retailers have been treated throughout this whole process is a real shame,” he said. “We understand the need for tobacco legislation, but I don’t think that the views of retailers have been truly considered at any point when it comes to the proposed generational smoking ban.”

Nishi Patel of Londis in Bexley Park added: “Despite this government claiming to back small businesses, we independent retailers are under more pressure than ever before. My main concern around the proposed generational smoking ban is that it will simply push people towards the illicit market – this will be another blow to the revenues of retailers and lead to more crime in our local area.”

Read more: JTI faces criticism over generational smoking ban opposition