32 vape shops across Swindon and Wiltshire could lose business rates relief following a Budget announcement that also brings additional costs for retailers selling vaping products.
The proposed change would remove business rates relief for vape shops and adult gaming centres, as part of a wider package intended to reduce business rates bills for many shops, restaurants and gyms across England.
According to figures supplied by Ecigone, Wiltshire has 21 vape shops still trading, while Swindon has a further 11.
The announcement comes less than a month after a new tax on vaping liquid came into force, adding to the financial pressures facing businesses in the sector.
Vape retailers face another cost
The Vaping Products Duty came into effect on 1 October, introducing a charge of £2.20 for every 10ml of vaping liquid.
Whether that cost is passed on to customers is a commercial decision for individual businesses, meaning the effect on prices could vary between retailers.
The removal of business rates relief would create another potential expense for high street vape shops, many of which operate as small independent businesses.
Shane Margereson, founder of Ecigone, said retailers were facing pressure from more than one direction.
“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,” he said.
Mr Margereson said he was concerned that rising costs for legitimate retailers could make illegally sold vaping products appear cheaper by comparison.
He also advised customers to compare prices, buy from UK-registered sellers and consider refillable vaping kits, which can cost less over time than prefilled pods.
Adult gaming centres also affected
The proposed change would also apply to adult gaming centres.
According to the Gambling Commission’s premises register, there are four licensed adult gaming centres across Swindon and Wiltshire.
The wider business rates package is intended to offer relief to a substantial proportion of businesses in England, with the Chancellor saying that half of the country’s shops, restaurants and gyms would pay no business rates at all.
However, vape retailers and adult gaming centres would be excluded from the relief.
For affected businesses in Swindon and Wiltshire, the impact will depend on their individual circumstances and the business rates they would otherwise be required to pay.
£100 energy payment for eligible households
There was also news for households, with around 258,100 homes across Swindon and Wiltshire reported to fall within council tax bands A to D and therefore qualify for a £100 energy payment under the announced scheme.
The payment is intended to help households deal with rising energy bills, with the money expected to be paid directly into eligible residents’ bank accounts.
Dawn Yates, of Ex Felons Support, advised households to check their eligibility and remain alert to possible scams.
She said residents should be cautious about unsolicited texts, calls or emails requesting bank details in connection with the payment, and should use their council’s official website to check the arrangements.
Residents should wait for official guidance on how the payment will be administered and avoid entering personal or financial information through links in unexpected messages.
What happens next?
For vape shops across Swindon and Wiltshire, the proposed withdrawal of business rates relief could add to the pressure created by the new vaping duty.
For households, the promised £100 energy payment could provide some help with bills during the colder months.
The next steps will depend on the detailed rules for the business rates changes and the arrangements for delivering the energy payments, including how affected businesses and eligible households will be notified.
