Press Releases - The Fed

The Fed gives a cautious welcome to handling fees for DRS

The Federation of Independent Retailers (the Fed) has responded to confirmation from Exchange for Change of the retail handling fees for those participating in DRS when it goes live in October 2027.

Exchange for Change announced today (June 2) that it intends to introduce a two-tier fee structure for those businesses taking part in the scheme.

Shops operating as manual return points will receive 3p per container, while those that have a reverse vending machine will be paid 5p per container for returns up to 225,000 per year and 1.3p for handling more than 225,000 annually.

The Fed’s National President Hetal Patel said: “The retail handling fee is a very important element of the whole scheme. While we would have preferred higher rates, the fees announced are not unexpected and we welcome certainty about what they will be.

“As a member of the advisory board for Exchange for Change, we have engaged closely with the consultation exercise and highlighted the importance of independent retailers like our members fully participating in DRS to drive up recycling rates.

“Throughout this process, we have stated that DRS must be cost-neutral for small shops and called for handling fees that help them cover their costs.”

He added: “We have some concerns about the direct and indirect costs associated with DRS – including things like capital, labour, maintenance and lost floor space.

“We await final details on key aspects like grants for those hosting reverse vending machines – which we have backed – as well as criteria around exemptions.

“There remains a lot to do for all stakeholders in retail and elsewhere to prepare ahead of the launch in Autumn next year, and we will continue to work closely with Exchange for Change to ensure DRS works for our members.”

Wes Streeting MP Meets the Fed in East London

A senior official of the Federation of Independent Retailers (the Fed) met with the Rt Hon West Streeting MP in his Ilford North constituency in early May to discuss some of the opportunities and challenges facing small shops.

National Trustee, Nilesh Patel, spoke about his many years of experience serving Ilford residents and the range of goods and services he provides at his business, Nils Convenience, on New North Road, in Ilford.

However, he spoke about the challenge caused by occasional theft. The meeting happened just a few days after the Crime and Policing Bill became law. This is something which the Fed has strongly supported, particularly its measures to control retail crime including a new standalone offence of assaulting a retail worker and the removal of a previous legal clause which had meant thefts below £200 in value were treated as a summary only offence by the courts.

Mr Patel also spoke about the work the Fed has done to promote the introduction of the Deposit Return Scheme (DRS) for recycling which will start in October 2027, with shoppers having to pay a returnable 20p deposit per plastic or metal bottle or can in order to encourage them to recycle.

Mr Patel said: “I would like to thank Wes Streeting for his time visiting my business and talking about the various issues facing small retailers at this time – particularly given his busy schedule as my local MP and his high profile nationally. It was good to discuss some of the occasional issues with theft as well as feedback on business rates. I also explained how important DRS will be after it is launched next year and what the Fed is doing to boost awareness of it.”

Senior Fed members, Vince and Fiona Malone, discuss DRS with Paul Davies MS in Wales

Senior members of the Federation of Independent Retailers, the Fed, Vince and Fiona Malone, met with Paul Davies, newly re-elected Conservative Senedd member for Ceredigion Penfro on Friday 22nd May at their shop in Tenby in the West Wales constituency, where they discussed how small shops and post offices like theirs are central to local communities.

Mr and Mrs Malone discussed the continuing challenges facing small shops and to discuss the retail agenda following the recent election on May 7th, including the points highlighted in the Fed’s manifesto ahead of the election, which focused on controlling costs, the need to affectively tackle retail crime and a clearer path to the adoption of the Deposit Return Scheme (DRS) for recycling cans and bottles in Wales.

The visit came at a time of great uncertainty about DRS in Wales which is looking to implement its own scheme but is yet to adopt a Deposit Management organisation (DMO) and potentially will have a scheme involving glass, in contrast to the rest of the UK.

The Malones also emphasised the need for a discussion about business rates which needs to factor in the social benefit provided by small shops like their own, as well as action to tackle retail crime through intervention from Neighbourhood Police.

Vince Malone said: “Independent retailers are the lifeblood of our communities and The Fed has been very vocal in speaking up for the needs of small shops ahead of the May election – including hosting the then First Minister – but we want to carry on with that engagement with all parties in the months ahead as well as the new Senedd and new Government gets as they get their feet under the table.

Mr. Malone said. “We want to ensure a Deposit Management Organisation (DMO) is appointed promptly to establish a roadmap for the Deposit Return Scheme (DRS) in Wales. This approach should align with the rest of the UK for cohesion and sustainability and the system must at least be cost-neutral for retailers – this is in everyone’s interests as we can only get a good rate of return for recycling when small shops are fully participating.”

Mr. Davies said: “It was great to speak with Vince and Fiona and discuss the work done in their shop and how it supports local residents. I look forward to representing them in the new Senedd and working with them and their colleagues in the Fed in the next four years.”

Fed backs government crackdown to support high street

The Federation of Independent Retailers (the Fed) has welcomed the Government’s establishment of a New High Street Organised Crime Unit and £30m funding across law enforcement to tackle organised crime on the High Street. These steps followed repeated Fed lobbying for more resourcing for trading standards and better coordination across government agencies to tackle illicit trade, which undermines legitimate retail businesses including Fed members.

In a statement Home Secretary, Shabana Mahmood, said: “Criminal gangs have exploited our high streets to launder their dirty money and undercut honest businesses.

“We are hitting back with a nationwide crackdown to shut these fronts down, seize dirty cash and drive organised crime off our high streets and put bosses behind bars.”

Fed National President, Hetal Patel, said: “Our members are responsible retailers and contribute an incalculable amount to local economies and the communities they serve- however, their good name and business model is undermined by rogue trade in illicit goods like black market tobacco and more – it is dismaying that the National Crime Agency (NCA) have recently said that £1 billion is laundered each year through high street businesses like mini-marts, barber shops, vape stores and sweet shops.”

“I raised these concerns in a meeting with the Crime and Policing Minister at the Home Office last year and we are therefore very pleased the Government is taking active steps to take this forward. We have been told that £20 million of funding will go towards the creation of a new multi-agency coordination team led by the National Crime Agency (NCA) as well as £6m extra to local authority trading standards – something we have called for – so this is very positive news.

“However, given the vast and growing scale of the problem, we feel even more pressure from Police and Government agencies will need to be focused on the problem in the months and years ahead. We will therefore continue to monitor this situation and work with Government to ensure there is greater focus and resourcing.”

The Fed welcomes new law to tackle retail crime

After years of campaigning and lobbying the government to make a serious commitment to tackling retail crime, the Federation of Independent Retailers (the Fed) is pleased to see that the Crime and Policing Bill has finally received Royal Assent and is now established in law.

As a trade organisation representing more than 8,000 smaller retailers, the Fed has relayed to politicians and police and crime commissioners time and time again that retail crime, including violence, theft and harassment, are of deep concern its members – more so now than ever.

Despite a small reduction in the number of recorded shoplifting offences, the latest figures released by the Office for National Statistics (ONS) on April 23 remain shocking, with 509,566 recorded offences in the year ending December 2025.

The Fed’s National President Hetal Patel said: “Theft is traumatic for shopkeepers and their staff, and a social blight. But it also imposes a series of direct and indirect economic costs for shops in terms of lost stock and expensive security measures, which undermine their financial viability.

“For these reasons, the measures contained within the Act, particularly the removal of the ridiculous £200 threshold for theft and the introduction of a standalone offence of assaulting a shopworker – with a possible prison sentence of six months – are welcome and long overdue.

“More broadly, we will continue to call for more active intervention from Community Policing teams, so that these issues are taken more seriously and that shoplifting is no longer widely regarded as a victimless crime.”

He added: “For too long, there has been a lack of police presence in communities, giving thieves and those who indulge in anti-social behaviour carte blanche to carry on unpunished.

“Therefore, the government’s Neighbourhood Policing Guarantee to deliver an additional 13,000 neighbourhood officers by the end of this parliament is another positive step.”

The Home Office says the new powers for police and the wider criminal justice system will help realise this government’s mission to restore confidence in policing.

Mr Patel said: “What independent retailers want to see now is effective, direct action to curb the scourge of retail crime, and the police and courts to carry out the measures in the Crime and Policing Act to prosecute and deter criminals.

“We will continue to work closely with the government on the application of measures in the Act and push for targeted retail security grants to be introduced, so that small retailers can afford expensive security enhancements like next generation CCTV and other measures to keep their shops secure.”

The Fed Continues call for Faster Application of DRS in Wales

The Fed’s President in Wales, Mark Dudden, has added his voice to calls for faster action implementing a Deposit Return Scheme (DRS) for recycling in Wales and for the adoption of a Deposit Management Organisation (DMO) which can administer it.

With the Welsh Senedd election due next week, the Fed has written to the current Government Minister responsible, Huw Irranca-Davies and his officials urging the appointment of a DMO which can administer the scheme and deal with the various technical questions involved in implementing DRS. The sole applicant for the DMO, Exchange for Change, was rejected in its application earlier in April and the new application process will carry on until June.

Mark Dudden commented: “The Fed has actively engaged in the implementation of DRS, serving on the Advisory Board of the DMO covering the rest of the UK, but we feel for it to work it must have full interoperability with the rest of Britain and Northern Ireland.

“As we have also made clear in our manifesto for the election, launched in January, the Fed also has concerns that adding glass to the mix will make it hard for small shops – and ultimately make the best the enemy of the good, undermining the Welsh scheme as a whole. Whoever takes on responsibility for running it, we hope a new DMO can be put in place as soon as possible to ensure clear communication and support for Welsh retailers when DRS is launched in just less than 18 months.”

Leicester East MP vows to back Fed members

Leicester East MP Shivani Raja has pledged to support independent retailers who are suffering from rising business rates, illicit tobacco, and surging crime following a meeting this month (Thursday, April 16) with a delegation of members from the Federation of Independent Retailers (the Fed).

Ms Raja, who has represented the constituency since the last General Election almost two years ago, offered to deliver a letter from Leicester retailers highlighting these concerns to the Chancellor Rachel Reeves.

Fed members attending the meeting at her constituency offices were included East of England district president Jital Patel, Sunil Patel, Parth Patel, Rinku Patel and Hetal Patel. All have shops in Leicester. Fed members development executive Kully Kumar and political engagement coordinator Douglas Oliver were also in attendance.

During the meeting, Hetal Patel spoke about the new measures being introduced in the Tobacco and Vapes Bill and the rising cost of tobacco and the lack of resourcing provided by central government to help support legitimate retailers. The Fed team had said that they had raised these concerns in conversation with the Home Office and in correspondence with the Leicester PCC, but that challenges remained.

Parth Patel highlighted the impact of rising business rates bills which had controversially increased in April as the revaluation of properties – which sets the bills – had taken effect. Mr Patel added: “After operating for the last 35 years in the city, providing vital services, we might not survive another five years.”

Sunil Patel said: “Speaking as someone who first began as a retailer in Leicester more than 40 years ago, this is one of the toughest times I can remember and every retailer I know is reporting challenges because the cost of living squeeze is hitting our customers and because energy costs and taxes going up mean that our own costs are rising.”

Commenting on her Facebook page about the meeting, Ms Raja said: “These retailers are small businesses that make all the difference in our day-to-day lives, strengthening our local economy and playing a vital role in keeping our communities connected, supported, and thriving.”

Jital Patel said: “I look forward to working with Shivani in support of the Fed future. We were very pleased to explain the commercial benefits of Fed membership and we look forward to inviting her to visit some of our local businesses, as well as our Leicester trade show in October.”

Fed Members Featured in Newsnight Discussion on Retail Crime

Fed Members Vince and Fiona Malone have again been interviewed on BBC Newsnight the continuing problems with retail crime on the same day that Government data again highlighted high levels of theft in shops. The interview came as BBC reporting highlighted problems with illegal drug use on the High Street and problems with rogue trade on the High Street.

Thursday’s interview with Mr and Mrs Malone came 18 months after they were previously interviewed by Newsnight in 2024 when they reported theft was causing their business in Tenby in West Wales “about £26k annually, roughly £500 every week”.

Whilst they say theft rates had fallen significantly since the installation of a CCTV and AI tool which cost them about £13,000. Mr Malone said: “We are under no illusion that theft has stopped… there is a problem of social acceptance”.

Mrs Malone also spoke about the challenges of confronting shoplifters and the need to challenge shoplifters “as they need to know it is wrong – last year Vince was punched in the face and the shoplifter asked why it was wrong as shoplifting was a victimless crime.”

Despite the marginal fall in shoplifting reported in ONS Government data yesterday, the Fed’s National President has called for further action to be taken to control it further.

Meanwhile, the Fed has continued to call for more action on shoplifting and for society to better recognise the human nature of theft because of the emotional toll it plays on retailers, whilst undermining their economic viability, leading to wider inflation in shopping costs for small businesses.

Fed members highlight illicit tobacco concerns on National Television

Two Fed members have spoken out on national television about the growing impact of illicit tobacco, as new data highlights a sharp decline in legal sales across the UK.

Official figures show legal tobacco sales have more than halved since 2021, with the rise of the illegal market cited as a key factor. The issue was explored in reports by ITV News, which featured independent retailers from across the Meridian and Anglia regions.

Dimpee Sood, owner of Falcon News, Portsmouth, said the shift towards cheaper, illegal alternatives is having a direct impact on legitimate businesses.

“The decline has been significant year on year,” she said. “Our sales have declined, our purchases for tobacco have declined. It is the cost.

“We’re challenged by the rising costs of tobacco compared to the illicit trade being sold at a much lower price. We can’t compete and neither do we want to.”

Similar concerns were raised in the East Anglia region, where Avda Kucchadia, who manages Neil’s Premier, Peterborough, owned by Fed member Neil Godhania, highlighted the pressure retailers face at the till.

“We regularly have customers coming in complaining about tobacco prices,” he said. “We understand from their point of view it is expensive nowadays, but if we sell a pack for £30, they might go elsewhere and get it for £10.”

Mr Kucchadia added that some customers are willing to take the risk on cheaper products, he added: “When we sell tobacco, you are getting what you pay for — it is legitimate. Customers buying cheaper tobacco elsewhere are taking a higher risk that it could be counterfeit.”

The ITV reports also highlighted enforcement activity, with Trading Standards teams uncovering illegal cigarettes, tobacco and related products during recent raids. Concerns were raised about the wider links between illicit trade and organised crime.

The Fed has continued to raise concerns about the impact of illegal tobacco on members, warning that it creates unfair competition for responsible retailers who follow the rules.

The Fed Welcomes Confirmation of DRS Deposit at 20p

The Fed has welcomed the confirmation from Exchange for Change – the non-profit industry-led body which is going to deliver and administer the Deposit Return Scheme (DRS) for Recycling, when it launches in October next year – that plastic bottles and cans will be subject to a 20p deposit as part of the DRS scheme.

The 20p figure was decided after consideration of a 10p or 30p amount.

The Fed’s National President Hetal Patel said: “The Fed is pleased that this has now been confirmed. All the evidence from retail engagement in the UK and from other countries already applying DRS around the world indicates it has been set at a sensible level. This will provide customers with a positive nudge to return their bottles and cans so they can be recycled, reducing waste.”

Russell Davies, Exchange for Change CEO said: “The deposit value is a pivotal part of how the deposit return scheme will work in practice. That’s why we’ve engaged widely with industry, undertaken extensive market research and in-depth analysis on how schemes work in other countries. This work has identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK.

Meanwhile, the Fed continues to engage actively on DRS – serving on Exchange for Change’s Advisory Board – and is calling for DRS to be “revenue-neutral” for retailers, with a generous handling fee and a system of grants to help small shops prepare for the change next year.

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