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A new breed of professional charity shops selling new goods are putting small
retailers at risk by undercutting them and should no longer benefit from tax breaks, a leading business pressure group
has said.
The FPB said the complexion of charity shops had changed enormously in recent years and many big name charities are now competing directly with small businesses.
Campaigns Manager at the FPB, Victoria Carson, explained: "Small businesses are becoming increasingly frustrated with the new style chain charity shops which are actually more like businesses with the buying power of a major retailer.
"The line has become blurred. Many charities like Oxfam and Sue Ryder are now aggressively competing in the commercial market place employing professional staff selling a range of new goods.
"They have disposed with the volunteer led shops selling cheap donated goods. Yet they still keep their costs down by benefiting from generous tax breaks, such as the 80% mandatory business rates reduction.
"Meanwhile smaller businesses have to meet overheads such as rent, rates, the minimum wage and corporation tax.
The FPB is supportive of charity shops but said they must compete with their small business neighbours on an equal footing.
"It must not be forgotten that last month a group of MPs warned that unless high street shops are protected they will have disappeared by 2015.
"Sadly charity shops are now adding to that pressure. Small businesses, as
the engine room of the UK's towns, villages and cities, must be supported and
protected by the Government locally and nationally. They are already feeling
tremendous pressure from the supermarkets, out of town shopping centres and
aggressive parking regimes."
Source:
RedAlert
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