PRS for Music tariff changes 'will disproportionately affect smaller retailers'
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The Association of Convenience Stores (ACS) has warned that proposed changes to the PRS for Music retail tariff could see the retail sector hit with an estimated £1.26m in costs.
Under the proposals, small shops will be hit the hardest. The smallest bands (0-300 sq. m.) could all see a cost increase under the new tariff.
Whilst the smallest band (0-100 sq.m.) will have lower rates under the new tariff, any business which had a reduced rate for having a small audible area with single TV or single radio will experience a £51.50 cost increase to their rate each year.
In a response to the consultation to change the tariffs, ACS urged PRS for Music to consider the following measures to minimise the impact on small retailers:
- Reinstate the reduced rate for stores with a small audible area
- Maintain the five bands between 0-500sqm instead of moving to three larger bands
- Graduate the cost increases between bands more fairly, as currently stores between 200-500sqm are set to see a fee increase of almost double that of stores between 500 - 1250sqm
While ACS welcome simplification of the retail tariff, the proposed simplified tariff loads the costs onto the smallest stores.
ACS chief executive James Lowman said: "The proposed changes from PRS for Music will disproportionately affect smaller retailers. We do not believe that removing the reduced rate for the smallest retailers is appropriate, especially at a time when all convenience stores are experiencing cost increases in many other areas of their businesses.
"PRS' planned tariffs will cut costs for many larger stores whilst squeezing more from small stores, and this is something that needs to be urgently addressed."
Responding, Steve Hills, head of licence simplification & tariff development at PRS, said: "We would like to thank everyone who has taken part in our Retail Tariff consultation, the purpose of which is to engage with our customers and trade bodies and participate in an ongoing dialogue about simplifying our retail tariff.
"We will be reviewing all responses received, which includes comments and suggestions received from smaller retailers, and will be publishing the results before we make any decisions regarding our current retail tariff."