Big-name charity shops are becoming increasingly competitive with small firm and should no long benefit from tax breaks, according to a business pressure group.
Many charities, such as Oxfam, the Forum of Private Business (FPB) claims, are employing professional staff and selling a range of new goods in an attempt to more aggressively compete in the commercial marketplace.
Volunteer-run shops that sell donated goods are increasingly a thing of the past, the FPB said, and it is time for regulators to acknowledge this.
“The line has become blurred,” said FPB campaigns manager Victoria Carson. “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.”
These so-called “chain charity shops”, she said benefit from tax breaks, such as the 80% mandatory business rates reduction, which helps them keep their costs down. Meanwhile, the average small business must pay rent, business rates, corporation tax and minimum wage.
“It is only fair that if charity shops sell new goods, and if they are buying stock in bulk with the power of a chain, that they should not get the tax breaks,” said Christine Longworth, owner of Cards Plus in Westbury, Wiltshire.
“And if the charity shops employ professional staff then not all the money raised in the shop is going to the charity. Not paying full business rates also helps them afford to get prime location premises which is another advantage.”
Carson maintained that the FPB is supportive of charity shops, but if they are going to compete with small businesses, they must do so on an even playing field.
Miss Carson said 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,” she added.
“Sadly, charity shops are now adding to that pressure.”
