NEWS | Industry Updates


individual businesses, the changes will add over £100,000 in costs—an unsustainable burden at a time when many are already struggling with rising costs for fuel, energy, ingredients, transport, and shipping.” David Llewellyn, Chief Executive of the


The budget: AVA warns of consequences


The Vending and Automated Retail Association has issued a stark warning to the Government, highlighting the potentially devastating impact of recent Budget changes on small and medium- sized enterprises (SMEs) within the sector. In an open letter to the Chancellor of the


Exchequer, the industry’s Trade Association expressed grave concerns over the financial strain posed by changes to Employer


National Insurance Contributions (NICs), coupled with increased national minimum wage and living wage levels. These adjustments, they argue, will impose an estimated £39 million in additional annual costs across the sector, jeopardising jobs, businesses, and economic stability. “Our industry is predominantly made


up of SMEs, many of which employ fewer than 50 people,” the letter states. “For


New employee rights: what the new bill could mean for the industry


Reforms in the long-awaited Employee Rights Bill, published following the General Election, have been largely welcomed, but there are some concerns about the potential impact on small businesses according to David Llewellyn, chief executive of the AVA.. Many of the proposals within the Bill


were anticipated, having been outlined in the King’s Speech earlier this summer and prominently featured in Labour’s election manifesto. Touted as the most significant reform to workplace rights in a generation, the Bill aims to enhance job security and working conditions across the UK, while contributing to economic growth. However Mr Llewellyn cautioned:


“Granting day-one unfair dismissal rights to new employees could increase risks for small businesses, making them less likely to hire. This legislation might deter small employers, especially those offering opportunities to people returning after long absences, such as for health or caregiving


4 | vendinginternational-online.com


reasons. The added employment costs and lack of clear guidelines on probation periods may stifle job creation and growth. Small businesses, particularly those with fewer than 10 employees, are already facing financial challenges, and further regulations


AVA, warns that the cumulative pressure from these new costs, delivered at unprecedented speed, could lead to widespread job losses, business closures, and inflationary price increases. The challenges are particularly acute for an industry reliant on long-term contracts, where passing on costs to clients is often not feasible. The Trade Association acknowledged the Government’s commitment to improving public finances and supporting economic recovery but stressed that the proposed NIC changes disproportionately impact lower earners and risk undermining flexible working arrangements. “We fully support the ambition to deliver inclusive growth and economic stability,” the letter continues, “but these changes threaten to stifle the very businesses that underpin employment and opportunity across the UK.” The industry has called on the Chancellor


to reconsider the NIC changes and explore alternative measures that support economic recovery without endangering the viability of small businesses.


could worsen the situation. Exempting these ‘micro’ and ‘small’ firms could balance reform goals without burdening them.” The Bill’s Parliamentary process is already underway, with its second reading having taken place on 21 October 2024. Various consultations on different aspects of the Bill will follow in 2025 which the AVA will be keeping abreast of. For more information, visit https://www.


gov.uk/government/news/what-does- the-employment-rights-bill-mean-for-you


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