gordons llp retail snapshot

Retail Snapshot 2023

A new year is upon us, and there are many legal and regulatory changes on the horizon.  Our 2023 Retail Snapshot is designed to help retail businesses in the UK stay up to date.

Please contact one of our Retail Experts to talk about what these changes mean for you and your business.

We will be providing more detailed updates on our social media channels as the year progresses.


Extended Producer Responsibility (EPR) for packaging

Businesses that handle packaging (the meaning of packaging will also broaden) must collect certain data relating to their recycling responsibilities from 1 January 2023, in readiness for EPR coming into force in 2024.

Click here to learn more.

Proposed changes to the Food Law Code of Practice

The Food Standards Agency is considering changing the Food Code including:

  • a new risk rating scheme to understand the risk posed by applicable food businesses; and
  • a new decision matrix regarding food standards controls.

The consultation closes on 9 January 2023.

ICO Consultation on Monitoring Employees in the Workplace Closes

This consultation relates to draft guidance published by the Information Commissioner’s Office (ICO) on monitoring employees at work. The consultation closes on 11 January 2023, and the updated guidance is expected to be published later this year. We expect to see increased privacy regulation in this area.

Pay now, argue later: service charge Supreme Court ruling

The Supreme Court has ruled in the Sara & Hossein Asset Holdings v Blacks Outdoor Retail case regarding service charges, taking a middle-ground approach. Calling it “pay now, argue later!”, the ruling confirms that tenants should pay upfront the service charge requested to protect the landlords’ cash flow. However, after payment, the tenant could bring a claim for a refund if it turned out that the landlord had charged sums that it was not entitled to charge.

Click here to learn more.

Online Sale of Goods (Safety) Bill

This Bill concerns new regulations regarding the safety of goods sold online. The next stage for this Bill is scheduled to take place on 20 January 2023.

Groceries: CMA begins a review into unit-pricing

On January 31 2023, the Competition and Markets Authority (CMA) announced that it was commencing a project to review how unit pricing is implemented in grocery stores and online. Unit pricing indicates how much a product costs by weight or volume, in turn assisting consumers to determine the best value for money. In a press release, the competition watchdog explained that the rising cost of living prompted the review, and that they will now begin to examine grocery unit pricing to ensure retailers are complying with unit-pricing requirements. Although the project is still in its early stages, we can expect an update later on this year.


Buy-Now Pay-Later product regulation

On 14 February 2023, the Treasury announced that it is consulting on draft legislation to bring Buy-Now Pay-Later products into Financial Conduct Authority regulation. This long-awaited consultation follows the government’s intention to regulate interest-free Buy-Now Pay-Later products. It is likely that lenders will have to do better affordability checks on borrowers and ensure clearer information is provided on their loans. Under the proposals, the Financial Conduct Authority would be given powers to keep firms under control and crack down on any who break the rules. The consultation closes at 11:59 pm on 11 April 2023, with an aim for the proposals to become law before the end of 2023.


Harassment in the workplace laws to be strengthened

On 7 March 2022 the UK ratified the International Labour Organisation’s Violence and Harassment Convention, which will come into force on 7 March 2023. As a member of the convention the UK must maintain laws which prohibit violence and harassment in the workplace and strengthen existing monitoring and enforcement mechanisms.

New Import Control Regime

The Customs Handling of Import and Export Freight (CHIEF) is being completely replaced by the Customs Declaration Service (CDS), with the last day for making export declarations on CHIEF being 31 March 2023.


Consumer Duty (FCA)

The Financial Conduct Authority is introducing a new Consumer Duty for firms operating in the financial services sector. This will require firms to deliver ‘good outcomes’ for retail customers and improve the standard of care given to them.

Change to National Living Wage

Announced in the 2022 Autumn Statement, the NLW increases are set to impact every age band, from apprentices to individuals aged 23 and over.

The National Living Wage changes from £9.50 to £10.42 per hour on 1 April 2023 for people aged 23 and over.

Changes to Top Rate of Income Tax

The income tax threshold over which tax is paid at 45% is reduced from £150,000 to £125,140 from 1 April 2023.

Corporate Tax rates change

From 1 April 2023, companies will be required to pay different rates of Corporation Tax, depending on profits. The new rates are as follows:

25% for companies whose taxable profits exceed £250,000; and

19% for companies with profits of less than £50,000.

For those companies whose taxable income falls between these, the applicable rate will be 25%, subject to marginal relief.

MEES Regulations to apply to all privately rented properties

MEES Regulations apply to domestic and non-domestic properties. The Regulations will make it illegal for a landlord to let out a property with an EPC rating of ‘F’ or ‘G’, subject to a number of exceptions.

Since April 2018 the Regulations have applied to new tenancies but from April 2023 they will apply to all privately rented properties.

Click here to learn more.

Business Rates review

Business rates are to be reviewed with effect from April 2023.


Bank Holiday allocation

An additional bank holiday has been set for 8 May to mark the King’s coronation. Businesses and organisations should decide promptly if they want to give employees additional leave.

Click here to learn more.

Employment (Allocation of Tips) Act

The Employment (Allocation of Tips) Act came into force on 02 May 2023. The Act creates a legal obligation on employers to ensure that all employees are allocated 100% of any tips or service charges, save for any statutory tax or National Insurance deductions.

Click here to learn more.

Carer's Leave Act

This bill received Royal assent on 24 May 2023, requiring the Secretary of State powers to enact legislation allowing a new, specific type of leave for employees caring for dependent family members or friends (of up to one week’s unpaid leave per year). Although the Act is now law, employees will not have the right to take this type of leave until certain regulations are put in place. The government has not commented on timescales.

Neonatal Care (leave and pay) Act

This bill received Royal assent on 24 May 2023 and will allow employees to take leave for neonatal care. Employees will be entitled to at least one week’s leave starting in the 28 days after birth as a day one right, and will be entitled to neonatal pay during that week if they have 26 weeks’ continuous employment. Entitlement for the new periods of leave under Neonatal Care Leave and Pay will only commence once the Secretary of State introduces regulations to that effect. There is currently no indication of when these will be introduced.

Protection from Redundancy (Pregnancy and Family Leave) Act

New legislation introduced on 24 May 2023 gives the Secretary of State power to significantly extend the period of protection from redundancy for pregnant employees.  Employees are currently only protected during their maternity leave, but under the proposed bill the protected period would begin the moment they inform their employer of their pregnancy and continue for up to 18 months after birth. While the Secretary of State has been granted power to make these changes, there is no indication from the government of if or when this will happen.


USD LIBOR rates to cease

For USD LIBOR, LIBOR rates will cease to be published from June 2023. This will be relevant to the extent companies have USD borrowings or payments based on USD LIBOR which have not already been amended.


The Food (Promotion and Placement) (England) (Amendment) Regulations

The restriction of foods high in fat, salt or sugar (HFSS) in retail stores by volume price will come into force on 1 October 2023. This means certain size businesses will not be able to sell multi-packs of HFSS food either in-store or online. The other provisions about where HFSS goods can be placed in stores came into force last year in October 2022.

DEFRA legislation on banning single-use plastic items

A ban on single-use plastic items such as plates, bowls, cutlery, cups and food containers will be introduced in a bid to reduce pollution. It is expected to apply to restaurants, cafes and takeaways.

Click here to learn more.


Retained EU Law (Revocation and Reform) Bill

In May 2023, the Government scrapped its intention to revoke every piece of EU retained legislation and will instead remove around 600 pieces of EU law from the statute books by 31 December 2023. Any laws not selected for revocation will be retained automatically.



Post-Brexit food labelling requirements come into force

The Food Information (Amendment of Transitional Provisions) (England) Regulations 2022 were delayed coming into force from 1 October 2022 to 1 January 2024. This means that until this date, UK food businesses can still apply EU food labelling rules to pre-packed food but on 1 January 2024, all pre-packed food must comply with UK labelling requirements, including the need for a UK business address.

Law Commision's Review of the Landlord and Tenant Act 1954

The Law Commission have announced a long overdue review of the Landlord and Tenant Act.

Click here to learn more.

No Specific Date

Online Safety Bill

Proposed new online safety legislation will regulate online services with the aim of protecting people (especially children) online. This legislation will place obligations on ‘Big Tech’ to police their platforms for illegal content. After much debate, the legislation is intended to be progressed in early 2023.

Click here to learn more.

Data Protection and Digital Information Bill

The Government intends to reform UK data protection legislation to replace the legacy EU GDPR. Although these provisions are expected to change with recent developments in mind, please see here for our summary of the proposed changes against current UK GDPR requirements.

Click here to learn more.

Consumer Pricing Bill

This Bill proposes to make a number of changes regarding organisations treatment of consumers, including prohibiting companies from offering better deals to new customers compared to their existing customers.

Consumer Telephone Service Standards Bill

This proposed legislation would provide a maximum waiting time for customers who are contacting utility providers and certain other services by telephone, and would require such companies to ensure that customers can speak to a person within that maximum waiting time.

Worker Protection (Amendment of Equality Act 2010) Bill

Under proposed new equality legislation, employers will be liable for harassment of employees by third parties (such as by customers, clients and contractors) unless they can show all reasonable steps were taken to prevent the harassment.

This legislation has progressed through the House of Commons and is expected to come into force later this year.

Click here to learn more.

Deposit Return Scheme (Scotland)

To increase the recycling rate of drink containers and reduce littering, the Government has proposed a deposit return scheme for drinks containers. This scheme will be implemented in Scotland from 1 March 2024. Implementation in England and Wales is under review.

State Opening of Parliment

This will give us an indication of Bills affecting retail that the Government will focus on during the remaining term of the current Parliament.

Digital Markets, Competition and Consumer Bill

The Government’s new Digital Markets, Competition and Consumers Bill aims to strengthen consumer rights, and increase competition between big tech firms.

Please note that this snapshot and our related updates are intended to be for information purposes only and should not be relied upon as legal advice.