- UK retail leaders seek government aid
- Concerns over business rates
- Urgency on theft and assaults
Numerous executives from the largest retail chains in the United Kingdom have united to urge the government to provide immediate assistance for the High Street, including help with business rates and a crackdown on theft.
Over the weekend, Stuart Machin, the chief executive officer of Marks & Spencer, stated that politicians “do not comprehend nor value” the retail industry’s critical role in the economy.
He condemned ‘inaction’ and ‘increasing regulatory burdens‘ as impediments to job growth and industry investment.
The concerns expressed by him are also shared by Alex Baldock, the CEO of the Currys electrical chain.
In addition to reforming business rates, Nish Kankiwala, chief executive officer of the John Lewis Partnership, advocated for a long-term development strategy.
The CEO of the Iceland frozen food chain, Richard Walker, stated, “The government must provide a breath of fresh air by implementing more sensible economic policies to repair the damage caused by high inflation.”
Co-op, pharmacy chain Boots executives want stricter steps to curb retail employee theft and violence.
“Don’t miss out! Grab your free shares of Webull UK today!”
Retail Chiefs Call for Policy Change to Boost Economy
Machin, who oversaw a turnaround in M&S’s fortunes, stated, “It’s a problem that I don’t believe politicians comprehend or value British retail.”
“This sector provides employment for more than 3 million individuals, which represents 10% of the total employment in Britain.” Additionally, it contributes over 5% to the overall economy and pays £17 billion in business taxation.
He further stated that retailers would be able to “invest in jobs, skills, and growth – the very things that will propel the British economy out of the slow lane” if these pressures were alleviated.
Baldock of Currys said the High Street is facing a perfect storm of price increases that may hinder inflation fighting.
For workers 23 and older, the National Living Wage will rise 9.8% to £11.44 per hour in April. The wages of individuals aged 21 and 22 will be equivalent for the first time, representing an increase of 12.4%.
The escalations in wages coincide with an almost £500 million surge in business rates liabilities for the High Street.
Baldock opined, “It will be counterproductive and prolong the period in which inflation is elevated.” It is detrimental to investment and employment. Already, retail is overburdened.
Kankiwala, representing John Lewis Partnership, stated, “In order to inspire confidence in business investments, we require consistency and certainty.” A suitable long-term growth strategy that transcends the political cycle is required.
Calls for Fair Taxation and Reform in Retail
The tax burden on retailers such as the John Lewis Partnership must be more equitable. Therefore, business rates reform must be a government priority.
Retailers express significant dissatisfaction with business rates. These rates are imposed on commercial establishments like stores and pubs. The dissatisfaction arises due to their foundation on property values rather than financial performance.
On numerous occasions, the levy has faced censure due to its antiquated nature, unpredictability, and perceived bias towards online retailers at the expense of physical stores located on the High Street.
Machin characterised the apprenticeship levy as a “missed opportunity” to enhance the skill set of the British labour force. The levy was also criticized by a number of prominent retailers.
Shirine Khoury-Haq, the leader of the Co-op, stated that £600 million in funding that could have been “used for good” had been returned to the Treasury due to the “current flawed system” for the apprenticeship levy.
A number of prominent retailers, including Khoury-Haq and Sebastian James, managing director of Boots, emphasised the urgency of taking action against the escalating incidents of shoplifting and assaults on store staff this year.
Numerous prominent retail executives have endorsed the Mail’s initiative to eliminate the tourist tax, which levies value-added tax (VAT) on purchases made in the United Kingdom by foreign visitors. This has been met with silence thus far.
UK expected to cut rates faster following inflation surprise
