BRIEFING PAPER CBP 5522, 11 June 2020
Shop opening hours and By Lorraine Conway
Sunday trading
Inside: 1. Background to Sunday trading legislation 2. Current permissible opening hours in England and Wales 3. Employee protection rights 4. Temporary suspension of Sunday trading rules: 2012 Olympic Games 5. Past attempts to change Sunday trading law 6. Coronavirus: Sunday trading 7. Review of high street 8. Sunday trading – statistics
www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | [email protected] | @commonslibrary Number 5522, 11 June 2020 2
Contents
Summary 3 1. Background to Sunday trading legislation 4 2. Current permissible opening hours in England and Wales 5 2.1 Weekday and Saturday trading 5 2.2 Sunday trading 5 Small shops 5 Large shops 5 2.3 Easter Sunday trading 7 2.4 Christmas Day trading 7 2.5 Situation in Scotland and Northern Ireland 8 3. Employee protection rights 9 3.1 Current position 9 3.2 Enterprise Act 2016: changes to shop workers’ rights 9 4. Temporary suspension of Sunday trading rules: 2012 Olympic Games 11 5. Past attempts to change Sunday trading law 12 5.1 Informal 2006 consultation: liberalisation of Sunday trading rules – no change 12 5.2 Consultation: devolution of power to local authorities 2015 – no change 12 6. Coronavirus: Sunday trading 15 6.1 Current restrictions 15 6.2 Enforcement of Sunday trading laws during the pandemic 15 6.3 Calls to suspend Sunday trading laws 16 7. Review of high street 19 8. Sunday trading – statistics 20 8.1 Frequency of Sunday trading 20 8.2 Impact of Sunday trading 20 8.3 Public opinion 22 8.4 Impact Assessment for Enterprise Bill (HL) 2015/16 22 8.5 Sunday working 23
Contributing Author: Christopher Rhodes, Statistics on Sunday trading (section 8)
Cover page image copyright: High Street Again by Duncan Brown (Cradlehall). Licensed under CC BY 2.0 / image cropped.
3 Shop opening hours and Sunday trading
Summary
On Mondays to Saturdays, all shops (regardless of their size) are free to remain open for as long as they wish. The situation is different in respect to Sunday trading. The Sunday Trading Act 1994 (the STA 1994) regulates Sunday shop opening hours in England and Wales. There are no equivalent restrictions to the STA 1994 in Scotland, but there are similar restrictions in Northern Ireland. Currently, under the STA 1994, a distinction is made between large and small shops in respect of permissible trading hours. For the purposes of the Act, a shop is classified as being large if it is over 280 square metres or 3,000 square feet in size. On Sundays, large shops may open for no more than 6 continual hours between the period 10am and 6pm. All large shops must close on Easter Sunday and on Christmas Day. In contrast, there are no opening restrictions for small shops (under 280 square metres or 3,000 square feet). In effect, a small shop could open twenty-four hours a day, every day of the year, including Easter Sunday and Christmas Day, if the owner so wished. On 23 April 2020, amidst the Coronavirus pandemic, Alok Sharma, Business Secretary, told the Commons Business Select Committee that he was considering allowing longer shop opening hours on Sundays to assist constituents. The precedent being the temporary changes introduced at the time of the London Olympic Games in 2012. However, there is opposition to this idea, not least from Usdaw (Union of Shop, Distributive and Allied Workers) concerned about employee rights and from those or do not want a further relaxation of the laws, even temporarily, for religious reasons. As at the date of this paper no formal Government announcement has been made on this issue. This Commons briefing paper sets out the current legal position in respect of shop opening hours and outlines new rights for Sunday shop workers contained in the Enterprise Act 2016. It considers the Government’s past attempt to devolve Sunday trading rules to local areas. It also considers recent calls to temporarily suspend Sunday trading hours during the coronavirus pandemic. Finally, this paper provides Sunday trading statistics.
Number 5522, 11 June 2020 4
1. Background to Sunday trading legislation
Box 1: Background to Sunday trading legislation The Sunday Trading Bill [Bill 1 of 1993/94] was published on 19 November 1993, presenting Parliament with three options for reforming the law on Sunday trading: • total deregulation; • a regulatory scheme based on proposals supported by the Keep Sunday Special Campaign and the Retailers for Shops Act Reform; and • a compromise scheme of partial deregulation based on the proposal of the Shopping Hours Reform Council (SHRC)
On the first day of the Bill's Committee Stage on 8 December 1993, MPs voted in favour of the SHRC scheme by 333 to 258 votes.
The Bill finished its progress in the House of Commons on 23 February 1994 and was read a second time in the House of Lords on 8 March. On 29 March 1994, the first day of the Bill's Committee Stage, the Lords were given the same free choice as the Commons between the three options for reform. In the event, the SHRC option was also settled on, by 206 to 151 votes.
The Bill received its Third Reading in the House of Lords on 19 May 1994 and returned to the Commons for consideration on 21 June 1994, when the Commons accepted all but one of the Lords’ amendments, concerning the treatment of garden centres and DIY stores. On 30 June 1994, the House of Lords concurred with the Commons' objection to this amendment and made no further changes to the Bill.
The Sunday Trading Act 1994 (STA 1994) received the Royal Assent on 5 July 1994 and came into force on 26 August 1994. At the time, the Department of Trade and Industry (now the Department for Business, Energy and Industrial Strategy (BEIS)), said the STA 1994 was a compromise between strongly held and competing views.
5 Shop opening hours and Sunday trading
2. Current permissible opening hours in England and Wales
2.1 Weekday and Saturday trading
Box 2: Weekday and Saturday trading Restrictions on shop opening hours on weekday and Saturdays were completely removed for all shops (large and small) by section 23 of the Deregulation and Contracting Out Act 1994. All shops are free to remain open for as long as they wish.
2.2 Sunday trading The current Sunday trading rules were established over 20 years ago in the Sunday Trading Act 1994 (the STA 1994). The Act liberalised Sunday trading law for shops, by repealing Part IV of the Shops Act 1950.1 It introduced a scheme of partial deregulation. The Act makes a distinction between small and large shops. Small shops Small shops are not covered by the restrictions of the STA 1994 and can open at any time on a Sunday. In effect, a small shop could open Small shops
twenty-four hours a day, every day of the year including Christmas Day, if the owner so wished. For the purposes of the Act, a shop is ‘small’ if its relevant floor area does not exceed 280 square metres or 3,000 square feet in size). Large shops The Sunday trading rules limit the Sunday opening hours of large stores Large shops in England and Wales to 6 continuous hours between 10am and 6pm on a Sunday. Large shops must display their opening hours inside and outside the premises. For the purposes of the Act, a shop is ‘large’ if its relevant floor area exceeds 280 square metres or 3,000 square feet in size. A few types of large shops are exempt from the provisions of the STA 1994 and can open all day on a Sunday (see Box 3, below). Local authorities trading standards officers enforce the STA 1994. It is an offence punishable on summary conviction by a maximum fine of £50,000, for a large shop to trade on a Sunday in contravention of the provisions of the Act.2
1 Clause 1 of the Sunday Trading Act 1994 provides for the repeal of the Sunday trading provisions contained in Part IV of the Shops Act 1950 and for their replacement by the provisions in Schedule 1 which contains restrictions on the Sunday opening of large shops 2 Section 7(1) Schedule 1 of Sunday Trading Act 1994 Number 5522, 11 June 2020 6
Box 3: A “large” shop for the purposes of the Sunday Trading Act 1994 Under the STA 1994, shops are ‘large’ if their relevant floor area exceeds 280 square metres or 3,000 square feet in size.
Large shops are limited to trading for a maximum of six hours between 10am and 6pm on Sundays and must display their opening hours inside and outside the premises. A few types of large shops are exempt from the provisions of the STA 1994 and are allowed to open all day on a Sunday. These are:
• farm shops • motor and cycle supply shops • stands at exhibitions • pharmacies for the sale of medicines • shops at airports, railway stations and shops servicing ocean going ships • shops at petrol filling stations and motorway service stations3 • Outlets which offer a service such as restaurants and public houses are also excluded from the restrictions on Sunday trading.
The Regulatory Reform (Sunday Trading) Order 2004 has removed the requirement for large shops to notify local authorities of their Sunday trading hours or of any changes.
Loading and unloading of vehicles at large stores The STA 1994 imposes restrictions on the loading and unloading of vehicles at large shops situated in a loading control area before 9am on a Sunday. In certain circumstances, consent can be obtained from the local authority to load and unload before this time. The Government does not propose changing these provisions. Planning restrictions It is important to note that there may also be existing restrictions on opening hours of individual premises imposed through planning permissions. These remain in place unless and until the local authority decides to permit a change.
3 Paragraph 3(1) of Schedule 1 of the Sunday Trading Act 1994 7 Shop opening hours and Sunday trading
2.3 Easter Sunday trading In addition to regulating the opening hours of large shops on Sundays, the STA 1994 prohibits large shops from opening at all on Easter Sunday.4 The Government does not intend to make any changes to this position.5
Box 4: Why are garden centres prohibited from opening on Easter Sunday? This issue was specifically considered by Parliament during the passage of the Sunday Trading Bill. In the event, an amendment proposing that large garden centres should be exempt from closing on Easter Sunday was defeated on a free vote in both Houses.
2.4 Christmas Day trading Large shops are also not permitted to open at all on Christmas Day; this is regulated through separate legislation, the Christmas Day Trading Act 2004 (see Boxes 5 and 6 below). The Government has confirmed that it does not intend to amend this Act.6
Box 5: The Christmas Day (Trading) Act 2004 • The Christmas Day (Trading) Act 2004 prohibits large shops and supermarkets from opening on Christmas Day whatever day of the week it falls. For the purposes of the Act, a ‘large shop’ is defined as being larger than 280 square metre or 3,000 square feet) in size. • The Act exempts those shops currently exempt from restrictions on Sunday trading under paragraph 3(1) of Schedule 1 of the STA 1994. • Smaller shops are unaffected by the Act and can open on Christmas Day. • Under section 3 of the Act, local authorities are under a duty to enforce the prohibition of opening by large stores on Christmas Day and to appoint inspectors for this purpose.
The Christmas Day (Trading) Act 2004 also prohibits large shops located in an area designated by a local authority as a loading control area from loading and unloading before 9am on Christmas Day unless,
(a) the relevant authority has granted consent, and (b) any loading or unloading is carried out in accordance with any conditions attached to that consent7
A person who breaches the prohibition on loading and unloading shall be liable to a fine not exceeding level three on the standard scale.
4 Schedule 1 to the Sunday Trading Act 1994 5 Department for Business, Innovation and Skills and the Department for Communities and Local Government, “Devolving Sunday Trading Rules – Government Response”, 9 February 2016, BIS/16/2, page 13, [online] (accessed 10 June 2020) 6 Ibid 7 Section 2(1) of the Christmas Day (Trading) Act 2004 Number 5522, 11 June 2020 8
Box 6: Background to Christmas Day trading legislation Prior to the passing of the Christmas Day (Trading Act) 2004, there was no legislation to prohibit Christmas Day opening other than the restrictions affecting large stores under the STA 1994. Under the STA 1974, large shops were required to remain closed on Christmas Day but only when the 25 December fell on a Sunday. Trading was allowed when Christmas Day fell on any other day of the week, although convention had dictated that large shops remain closed.
The Christmas Day (Trading) Act 2004 was a response to a growing trend for large shops to open on Christmas Day in 2002 and 2003. A campaign by USDAW (the Union of Shop, Distributive and Allied Workers) argued that large shops should be prohibited by law from opening on Christmas Day on whatever day of the week it falls.
USDAW was concerned that many of its members were already working longer hours over the Christmas period, often for no extra money.8
The Christmas Day (Trading) Bill, a Private Members’ Bill with Government support, was introduced in the House of Commons on 7 January 2004 by Kevan Jones MP. The Act came into force on 9 December 2004.
2.5 Situation in Scotland and Northern Ireland As already mentioned, the STA 1994 applies only to England and Wales. There are no equivalent restrictions to the STA 1994 in Scotland, Sunday trading is completely deregulated, but there are similar restrictions in Northern Ireland.9 It is important to note that shop workers’ rights contained in the Employment Rights Act 1996 extend to Scotland. This means that any changes to shop workers opt-out rights will apply across England, Wales and Scotland.
8 “Shop workers vote against Christmas Day opening”, USDAW press notice, 30 June 2003 [not online] 9 Shops (Sunday Trading &c.) (Northern Ireland) Order 1997 (S.I. 1997/2779) 9 Shop opening hours and Sunday trading
3. Employee protection rights 3.1 Current position The Employment Rights Act 1996 (the ‘ERA 1996’) contains protections for shop workers from having to work on a Sunday. Shop workers who started their employment before 26 August 1994 and have to date remained continuously in that employment cannot be required to work on a Sunday, subject to certain exceptions. All other shop workers (except those only employed to work on a Sunday10) can give their employer an opting-out notice which, with effect from three months beginning on the day that the notice was given, gives them the right to opt out of Sunday working. It is important to note that shop workers’ rights contained in the ERA England, Wales and 1996 also extend to Scotland. This means that any changes to shop Scotland workers opt-out rights will apply across England, Wales and Scotland.
3.2 Enterprise Act 2016: changes to shop workers’ rights The Enterprise Act 2016 (EA 2016) contains measures to strengthen shop workers’ rights in relation to Sunday working. Initial proposals to allow local authorities to extend Sunday trading hours were dropped during the progress of the Bill. Schedule 5 to the EA 2016 inserts new sections 41A to 41D into the ERA 1996. To bring these sections into force will require a commencement order. No date has yet been set for Schedule 5 of the implementation. EA 2016 will amend the Employment Once enacted, shop workers will have a new right to object to working Rights Act 1996 more than their normal Sunday working hours. They will be protected and will strengthen from detriment and dismissal as a result of exercising this new right. shop workers’ There is no minimum service requirement to bring a claim. In brief, the rights in relation to changes will mean that: Sunday working.
• Workers will be required to give only 1 months’ notice to large shops that they object to working on Sundays, rather than the current 3 months.
• There will be a new right for all shop workers to opt out of working more than their normal Sunday hours. This new right will also be subject to 1 months’ notice for shop workers at large shops, and 3 months’ notice for those at small shops.
• Employers’ obligations to provide information about the new opt- out rights will be clarified. Employers will be required to provide an explanatory statement notifying employees of their opt-out
10 For new employees, employers may ensure the need to work on Sundays is agreed when a job offer is made and written into contracts Number 5522, 11 June 2020 10
rights, including the right to opt out of working more than their normal Sunday hours. The statement must also set out where shop workers can find support and advice about their rights.
• Where an employer fails to notify their shop workers in accordance with these requirements, the notice period will, in respect of both opt-out rights, be automatically reduced. For shop workers in large shops the notice period will be reduced from 1 month to 7 days, or for shop workers in small shops, from 3 months to 1 month.
• Where an employment tribunal finds that an employer failed to notify a shop worker of their opt-out rights as required, the tribunal will be able to award the shop worker a guaranteed minimum award (2 weeks’ pay, or 4 weeks’ pay where the tribunal considers it just and equitable).
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4. Temporary suspension of Sunday trading rules: 2012 Olympic Games
Box 7: Sunday Trading (London Olympic Games and Paralympic Games) Act 2012 • The Act introduced a temporary suspension of Sunday trading restrictions for large shops. • The suspension only applied to eight consecutive Sundays, beginning on 22 July 2012 (the Sunday before the Olympic opening ceremony) and ending on 9 September 2012 (the Sunday on which the closing ceremony of the Paralympic Games took place). • In effect, all shops, of whatever size, could choose their own Sunday opening times for the period of the London Games. • Section 2 contained a sunset clause, ensuring that the Act was repealed on 9 September 2012. • Importantly, the Act temporarily reduced the usual period of notice that employees of large shops must give their employers if they wish to opt out of Sunday working, from 3 months to as little as 2 months. • Some commentators saw the temporary suspension of Sunday trading laws as crucial if large retailers (and the economy) were to benefit from hosting the London Games. Others criticised the Act; in particular, its use of the fast track procedure and the lack of consultation.
On 21 March 2012, George Osborne, then Chancellor of the Exchequer, announced in his Budget Statement that legislation would be introduced under the fast track procedure to introduce temporary changes to the STA 1994 during the London 2012 Games (see Box 7 above). The Chancellor said that it would be a great shame if Britain had a “closed for business sign on it during the Games”.11 He argued that a suspension of Sunday trading restrictions would assist in ensuring visitors could take full advantage of all the UK has to offer, including its shops.12 The Chancellor confirmed that the suspension of Sunday trading laws was to be a temporary “one-off” measure, but added that the Treasury may “learn lessons” from the experiment.13 At the time, this comment provoked some to accuse the Government of using the Olympics as a step towards the permanent deregulation of Sunday trading.14 Further background information is provided in the Library’s briefing paper (RP 12/20), written for Second Reading of the Sunday Trading (London Olympic Games and Paralympic Games) Bill.[1]
11 “Budget: Osborne plans new Sunday trading laws during Olympics”, BBC News, 18 March 2012, [online], (accessed 10 June 2020) 12 HC Deb 21 March 2012 c.800 13 HC Deb 21 March 2012 c.800 14 “Anger over plans to extend Sunday trading”, Independent, 19 March 2012, [online] (accessed 10 June 2020) [1] Sunday Trading (London Olympic Games and Paralympic Games) Bill [HL], Bill No. 335 2010-12, Research Paper 12/20, 26 April 2012 - attached Number 5522, 11 June 2020 12
5. Past attempts to change Sunday trading law
5.1 Informal 2006 consultation: liberalisation of Sunday trading rules – no change On 13 January 2006, the Government announced a review of the pros and cons of further liberalization of the Sunday trading laws. The Government gave various reasons for instigating this review, including: • Consumers now have greater expectations. • Many more people are in employment, often benefiting from flexible working outside core 9-5 weekday hours. • We are a more multicultural society. • There is greater recognition that we should only regulate where it is necessary to do so. • The Government’s belief that the time has come to have a fresh look at the issues around Sunday trading.15 As part of its review, the Government commissioned an independent cost benefit analysis on the impact of allowing large shops to open for longer. Nearly 1,000 responses were received to the consultation from consumers, religious groups, employees and business, with no substantial demand for change. On that basis, and having considered all the evidence from the review, Alistair Darling, then Trade and Industry Secretary, announced on 6 July 2006 that there would be no change to Sunday trading laws.16
5.2 Consultation: devolution of power to local authorities 2015 – no change In August 2015, the Government published a consultation paper in which it sought views on whether it should, as part of its localism agenda, devolve the power to extend Sunday trading hours to areas in England and Wales to give them greater choice and control of their local economy.17 Specifically, it proposed to devolve the power to extend Sunday trading hours in England to all unitary and shire district Potential economic councils and in Wales to all county and county borough councils. In benefits London and Manchester, the proposal was to devolve the power to mayors. In the consultation document, the Government outlined its view that extending Sunday trading hours across England and Wales could
15 Department of Trade and Industry (now Department for Business, Innovation and Skills) press notice, “No change to Sunday trading law”, 6 July 2006, [not online] 16 Ibid 17 Department for Business Innovation & Skills and the Department for Communities and Local Government, “Sunday Trading – Consultation on devolving Sunday trading rules”, August 2015, [on line] (accessed 10 June 2020) 13 Shop opening hours and Sunday trading
potentially bring significant economic benefits equivalent to an estimated £1.4 billion per year.18 This would be generated from lower prices as a result of increased efficiency from shops being able to make more use of existing stores. This would amount to £64 per household.19 It was argued that other potential benefits would include improved productivity by freeing retailers to make better use of large stores allowing them to sell more without a proportionate increase in costs. The Government highlighted an Office of National Statistics survey which found that 15 per cent of individuals would shop later on a Sunday at a supermarket. This represents around 6.1 million adults.20
More generally, it was the Government’s view that devolving Sunday More flexibility for trading rules to local areas would result in the following benefits: businesses and consumers • offer businesses more flexibility on opening hours;
• offer shop workers more opportunity to work on Sundays, whilst protecting those workers who do not; • offer consumers more choice about when and where to shop locally, irrespective of the size of the store; • offer advantages to working families who may be most able to do their shopping at the weekends; • allow local areas to decide for themselves as to the right approach to Sunday trading hours to drive competition, productivity and local economic growth; • ensure that the Sunday trading rules reflect local preferences, shopping habits and economic conditions; and • help major cities to compete for international tourism
Possible increase in Taking all these benefits together, it was the Government’s view that footfall in high extended Sunday opening hours would encourage an increase in streets on Sundays ‘footfall’ on high streets to the benefit of local businesses (large and small). In its consultation document, the Government drew attention to a study by the London School of Economics, which compared the effects of Situation in other extending Sunday trading hours in a number of European countries. It European countries found that the amount people spent on non-durable retail products, such as food, rose by up to 12.5 per cent following deregulation.21 However, the Government also acknowledged that some people and groups were opposed to any changes to Sunday trading rules for several reasons, not least a desire to keep Sundays special.
18 Ibid 19 Ibid 20 Ibid 21 “Evaluating the Impact of Sunday Trading Deregulation”, Centre for Economic Performance CEP Discussion Paper No 1336, Christos Genakos, Svetoslav Danchev, London School of Economics, March 2015, [online] (accessed 10 June 2020) Number 5522, 11 June 2020 14
For further information on the Government’s rationale for change, see Box 8 below.
Box 8: The Government’s rationale for change The Office for National Statistics, in its Retail Sales Index publication, has been collecting data on internet sales on a monthly basis since November 2006.22 • The value of internet retail sales averaged at £734 million a week in May 2015 compared to just £156 million a week in November 2006. • Total retail sales averaged £6.4 billion a week in May 2015. Internet sales now account for 11.5 per cent of all retail sales compared to just 2.8 per cent in nearly a decade when this data was first collected. • Just under half of all internet retail sales are made by ‘non-store retailers’ (those retailers without a traditional shop premises, such as mail order or specialised internet retailers). • Predominantly food retail stores, such as grocers and supermarkets, make a relatively small amount of internet sales with only 4.1 per cent of their sales occurring online in May 2015, up from 2.2 per cent in January 2009. This compares with 8.5 per cent of predominantly non-food retail stores being made online.
According to the Government, these statistics show the growing competition faced by high street stores by online sales. Sunday trading restrictions continue to limit shopping on the high street, whereas consumers can buy from online retailers at any time.
The Government’s response to its consultation paper was published in February 2016.23 It decided to take forward measures to devolve Sunday trading rules through amendments to the Enterprise Bill. The Bill had its Second Reading in the House Commons on 2 February 2016, having already completed all its stages in the House of Lords. On 9 February 2016, Anna Soubry tabled new clause 21 (with new Schedule 1). In a nutshell, the new clause sought to amend the STA 1994, giving powers to “Sunday trading authorities” (i.e. the relevant local authority for the area) to extend opening hours for large shops. The extended hours to apply to the whole or part of the local area. Schedule 1 contained amendments to the Employment Rights Act 1996 and the Employment Act 2002 in relation to Sunday working. New clause 21 (and Schedule 1) was considered by the Public Bill Committee on 25 February 2016 (during the 7th and 8th sittings). After a lengthy debate, the new clause was agreed and added to the Bill. However, on 9 March 2016, the Government abandoned the proposals after they were voted down by the Commons. Specifically, on Report, David Burrowes MP tabled an amendment, supported by 70 Members from across the House, which sought to delete sections 1- 4 of new clause 21. In effect, only Schedule 1 and the provision of new employment rights on the Sunday opt out survived.
22 Ibid 23 Department for Business, Innovation and Skills and the Department for Communities and Local Government, “Devolving Sunday Trading Rules – Government Response”, 9 February 2016, BIS/16/2, page 13, [online] (accessed 10 June 2020)
15 Shop opening hours and Sunday trading
6. Coronavirus: Sunday trading 6.1 Current restrictions On 23 March 2020 the Government directed that all “non-essential premises” must close with immediate effect to slow down the spread of coronavirus (Covid-19). Included in this definition were all shops selling non-essential goods. Shops that could remain open included food retailers (large and small), pharmacies, hardware stores, corner shops, petrol stations, shops in hospitals, post offices, banks, newsagents, laundrettes and pet shops. Throughout March 2020, supermarkets experienced crowds of shoppers wanting to stock up on essentials.24 Consumer demand has since returned to more normal levels, but the need to maintain social distancing has restricted the number of people that supermarket managers can allow into stores at one time.25 It is suggested that the six-hour Sunday trading window particularly constrains the numbers they can serve. On 9 June 2020, Alok Sharma, the Business Secretary, confirmed that all non-essential shops could reopen in England on Monday 15 June 2020, provided retailers follow safety guidelines.26 Failure to do so, could result in enforcement notices. However, public houses, bars, restaurants and hairdressers are not able to re-open until 4 July at the earliest.27
6.2 Enforcement of Sunday trading laws during the pandemic Some councils (for example Wakefield Council and Conwy Council in Wales) have decided not to enforce the Sunday trading regulations during the pandemic.28 The reason being to spread out the number of consumers visiting supermarkets at any one time, and to give key workers more time to do essential shopping on Sundays. Commenting on this decision, Usdaw (the shopworkers union) said that councils must provide guarantees that this is strictly a temporary measure. It said: “We are aware that some local authorities have stated that they will not prosecute illegal Sunday trading. Given the extent of the crisis the country is facing, we are not going to pursue this, although I’m not sure how much this will benefit key workers or reduce the pressure on the shops. However, we are only willing to accept this as a short-term temporary situation and we expect
24 “UK considers relaxing Sunday trading laws for supermarkets”, Financial Times, 24 April 2020, [online] (accessed 10 June 2020) 25 Ibid 26 “Coronavirus: all shops can open on Monday in England”, BBC News, 9 June 2020, [online] (accessed 10 June 2020) 27 Ibid 28 “Enforcement of Sunday trading rules temporarily relaxed by Wakefield Council”, Wakefield Council press release, 1 April 2020, [online] (accessed 10 June 2020) Number 5522, 11 June 2020 16
the co-operation of shopworkers to be respected and the situation to revert to compliance with the existing trading regulations once the immediate crisis has eased. Seeking longer term variation of the trading laws is taking advantage of shopworkers’ good will.
We are working with our members and retailers every day to keep the food supply chain moving and to keep retail workers safe and we support measures that would genuinely help other key workers. We would be more than prepared to discuss meaningful and effective measures to ensure that key workers can access essential supplies, but a blanket deregulation of Sunday trading is unlikely to help those who need it and would simply increase pressure on those working to resolve them.”29 There has been no comment from the Government about this “informal” relaxation of the Sunday trading rules.
6.3 Calls to suspend Sunday trading laws On 23 April 2020, with restrictions on shopping trips imposed as part of the Coronavirus lockdown measures, Alok Sharma, Business Secretary, told the Commons Business Select Committee that he was considering longer shopping hours on Sundays. He said: “There were temporary changes around the time of the Olympics [in 2012]. I think trade unions, people across the House [of Commons], would want to reflect on the fact that [a] temporary measure may well assist our constituents.”30 A group of 40 MPs, led by Nusrat Ghani, support a relaxation of the rules on the basis that it could give more shopping time to NHS staff and vulnerable customers, while also shortening queues.31 However, there is also opposition from other MPs who are concerned about employee rights or do not want a further relaxation of the laws, even temporarily, for religious reasons. Supermarkets themselves have different views on the issue. Those that predominantly operate large stores appear to be in favour; Morrisons is already opening an hour early on Sunday, contrary to the current rules, to offer a shopping window to NHS staff.32 Aldi and Lidl, which do not offer home delivery services, have also indicated support for extended Sunday hours.33 However, those with substantial convenience store operations (such as Tesco, J Sainsbury and the Co-operative) appear less enthusiastic.34 Already many Tesco Express and Sainbury’s local stores
29 “Councils not enforcing Sunday trading laws must provide guarantees that this is a strictly temporary measure says Usdaw,”Usdaw press notice, 2 April 2020, [online] (accessed 10 June 2020) 30 “UK considers relaxing Sunday trading laws for supermarkets”, Financial Times, 24 April 2020, [online] (accessed 10 June 2020) 31 Ibid 32 Ibid 33 Ibid 34 Ibid 17 Shop opening hours and Sunday trading
(with a sales area of less than 3,000 square feet) are open until 11pm seven days a week.35 Usdaw is opposed to the idea of longer trading hours on Sundays during the crisis. It said: “While we appreciate the desire to help the retail sector, this attempt to undo a long-held and respected compromise on Sunday trading is misguided. The last thing the retail industry needs is longer trading hours, there is no economic case for this and it will put extra pressure on the retail workers who have worked so hard throughout this crisis.
Retailers have mixed views over the benefits of opening longer on Sundays and we have repeatedly demonstrated that it would be bad for business. Opening for longer will increase overheads but not necessarily take any more cash through the tills. The fact is that customers will not have more to spend just because the shops are open for longer.
Our members in retail are working long hours, in difficult circumstances and under a great deal of pressure, they need a break. It isn’t too much to ask for a shorter day on Sundays. Deregulating trading hours will put more pressure on shopworkers to work longer and cause further problems with finding childcare.36 According to Usdaw, while in some places there are large queues around opening time, shops are relatively quiet later in the day and there is still plenty of stock on the shelves. It suggests that opening for longer on a Sunday would simply make the busy times earlier and the quieter times longer.37 Following press reports on 6 June 2020, that the Government was still considering a deregulation of Sunday trading hours, Paddy Lillis, Usdaw General Secretary, wrote to Alok Sharma. An extract from this letter is reproduced below:
Usdaw members and their colleagues have been working throughout this crisis keeping the shelves in our supermarkets stocked. This move to deregulate Sunday trading hours would come across as an opportunistic use of the coronavirus crisis and a slap in the face for each and every worker in retail and the food supply chain. I would hope that the Government would instead spend its time exploring how we can ensure that these low paid key workers can get the level of pay and job security they deserve.
For a number of years, Usdaw has been calling for a Government strategy to support the retail sector, especially the non-food sector that is currently closed. The Government has instead on a number of occasions started a debate over Sunday opening hours. Each time, we have shown that there is no credible economic case in favour of deregulating Sunday trading; and, on each previous
35 Ibid 36 “Sunday trading deregulation call rejected by Usdaw”, Usdaw press notice, 6 June 2020, [online] (accessed 10 June 2020] 37 Ibid Number 5522, 11 June 2020 18
occasion, the Government have backed off and withdrawn proposals to deregulate. These current proposals would not provide any real help to the retail sector as it looks to how to recover from the crisis.38 In this letter, Usdaw asked the Government to confirm that this proposal to suspend Sunday trading laws would not be pursued any further.39 As at the date of this paper, there has been no formal Government announcement.
38 “Sunday trading deregulation would be a slap in the face for key workers says Usdaw”, letter from Paddy Lillis, Usdaw General Secretary, to Alok Sharma, Secretary of State for BEIS, 6 June 2020, [online] (accessed 10 June 2020) 39 Ibid 19 Shop opening hours and Sunday trading
7. Review of high street
To rejuvenate the local high street, the Government asked retail expert Mary Portas to carry out a review of town centres in 2011. “The Portas Review – An independent review into the future of our high streets”, was published in December 2011.40
Mary Portas put forward 28 recommendations to rejuvenate the high The “Portas Review” street, including clamping down on out-of-town developments by requiring all new precincts to be subject to ministerial approval. While the Government accepted most of her recommendations, it rejected this, her most far-reaching suggestion.41 On 1 March 2016, there was a Westminster Hall debate on the high street and the challenges faced by retailers.42
40 “The Portas Review – An independent review into the future of our high streets”, Mary Portas, December 2011, URN/11/1434 [online] (accessed 10 June 2020) 41 “Battle begins to revitalise empty high streets”, Financial Times, 5 August 2015 42 HC Deb. 1 March 2016 cc195-221WH Number 5522, 11 June 2020 20
8. Sunday trading – statistics43 8.1 Frequency of Sunday trading In 2006, the then Department of Trade and Industry produced a review of Sunday trading regulations.44 The key findings from a consumer survey commissioned from ONS are outlined below. In 2006: • 5.6 million adults (13%) shop at supermarkets every Sunday and 2.8 million shop at other large shops every Sunday
• 53% of the individuals who shop at a large shop also shop at a supermarket on Sundays
• Over a third of individuals shop at least once a month on a Sunday (46% at supermarkets and 36% at other large shops).
• 10.1 million adults (24%) never shop at a supermarket on a Sunday and 11.9 million never shop at other large shops on Sundays.
8.2 Impact of Sunday trading Retail sales The impact of changes to Sunday trading regulations can be partially assessed by examining the last time a change to these regulations was introduced: around the time of the Olympics in 2012. For eight Sundays, from the 22nd July to the 9th September 2012, the regulations were temporarily altered so that the Sunday opening hours of large shops would be subject to the same rules as small shops. This meant that during this period, shops of all sizes could open for more than six hours. Data on retail sales during July, August and September 2012 are shown in the chart below, compared with the surrounding months.
43 This section was written by Christopher Rhodes, Economic Policy and Statistics Section, House of Commons Library 44 Indepen, The Economic Costs and Benefits of easing Sunday shopping restrictions on large stores, 2006, p1 21 Shop opening hours and Sunday trading
Retail sales, 2012: % change compared to same month in 2011 Volume, Seasonally adjusted
2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 April May June July August September October November December
Retail sales were up in each of the ‘Olympic months’ in 2012, by around 2% compared to the same months in 2011. This was above the growth seen in the months following the Olympics period, but roughly the same as seen in May and June 2012 when Sunday opening rules were unchanged.45 Note that the increase in sales around this time could have been caused by factors other than relaxed Sunday trading rules, for example the increase in tourism to the UK around the time of the Olympics. According to Visit Britain figures quoted in the Financial Times, the full relaxation of Sunday trading hours in Sweden was responsible for a 5% increase in retail turnover.46 Small retailers The current Sunday trading regulations mean that small retailers are the only retailers permitted to open for more than six hours on Sunday. The Associations of Convenience Stores (ACS – the trade association for small shops) has argued that relaxing the current regulations could lead to small shops losing trade. A study by Oxford Economics study commissioned by ACS analysed the relaxation of Sunday trading rules around the time of the Olympics in 2012. The study found that: • Independent convenience stores within one mile of a supermarket lost £1,300 or 3.4% of their weekly sales • Independent convenience stores within two miles of a supermarket lost £1,200 or 3.1% of weekly sales.47 In terms of employment, the report found that if the relaxed Sunday trading regulations were made permanent, the independent
45 ONS, Retail sales, data series J45U 46 Financial Times, Councils handed power to end last restrictions on Sunday trading, 8 February 2016 47 Oxford Economics (for ACS), The economic impact of deregulating Sunday trading, September 2015, p15 Number 5522, 11 June 2020 22
convenience store sector would lose 6,800 jobs, a 1.8% decline. This would be partially offset by job creation in large supermarkets.48
8.3 Public opinion A recent Populus poll commissioned by ACS on support for the current Sunday trading regulations found that over two thirds of people support the current rules.49
“Large shops can open for six hours on Sunday. Do you support this rule?” 67%
60% Although this poll shows support for the current situation, it is not clear whether 40% those who said they oppose the current 23% saturation did so because they think 20% 11% trading hours should be extended, or because they want trading hours further 0% restricted. Support Oppose Don't know
An Ipsos MORI poll from 2012 found that 40% of adults supported Sunday trading, 53% were against extended trading hours on Sunday and 7% were undecided.50 The Ipsos MORI poll also found that young people were more likely to support extended Sunday trading compared with older people. 56% of people aged 15 to 24 supported extended Sunday trading hours compared with only 24% of people aged over 65.
8.4 Impact Assessment for Enterprise Bill (HL) 2015/16 The Government published an Impact Assessment on 9 March 2016 which examined extending Sunday trading hours, ahead of the Committee Stage of the Enterprise Bill, when Parliament debated the proposed devolution of Sunday trading decisions.51 The Impact Assessment uses a range of sources, comparisons with the situation in other countries and changes to UK regulations in the past to make a number of estimates: • Extending Sunday trading hours could benefit the English and Welsh economy by £1.5 billion over ten years.
48 Ibid. The report also notes that relaxed Sunday trading hours could result in 2,000 job losses in convenience stores operated by large retail multiples, such as supermarkets. 49 Populus (for ACS), Attitudes towards Sunday trading, September 2015, p6 50 Ipsos MORI, Most shoppers agree with government’s decision not to extend shopping hours this Sunday, December 2012 51 Department for Business Innovation and Skills, Devolving Sunday trading rules: impact assessment, 9 March 2016 23 Shop opening hours and Sunday trading
• This is largely the result of the “increased utilisation” of stores by large retailers, meaning that they are able to reduce capital investment in new stores, whilst potentially increasing transactions. • These changes have the potential to result in an annual UK-wide benefit of £184 million. The Impact Assessment notes that these estimates are subject to uncertainty because it is not clear how the proposed changes would have been used by local authorities, how business would have responded to the possible relaxation of Sunday trading restrictions, and how customers would have responded to altered opening hours.
8.5 Sunday working The number of people who work on Sunday has more than double since the Sunday Trading Act first came into force in 1994. • In 1994, 2.1 million people usually worked on a Sunday, 8.5% of the workforce. • In 2015, this figure had risen to 5.2 million, 16.7% of the workforce. Looking at only sales jobs, in 1991, 63,000 men and 81,000 women usually worked on Sunday. In 2015, 265,000 men and 382,000 women usually worked on Sundays. These data come from an ONS article published in March 2016 to inform debate around the Enterprise Bill.52
52 ONS, Two decades of Sunday trading, 9 March 2016, [online] (accessed 10 June 2020)
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