Ahead of next month’s Budget, chief executive of the British Retail Consortium (BRC), Helen Dickinson, has written to Rachel Reeves (pictured) with a warning of a stark future for the UK’s retail landscape.
In a letter sent on Tuesday, Helen Dickinson advises that: “If implemented, our recommendations will allow the Government to unlock UK-wide investment, bolster public finances and accelerate the move to a net zero, circular economy.”
However, it goes on to point out how difficult the last few years have been for retailers, mentioning the pandemic, supply chain issues and inflation, before highlighting the obstacles on the horizon such as the deposit return scheme for drinks containers and more.
Dickinson continues: “We have spoken previously about business rates reform as the way to unlock retail investment and growth… New research we have completed provides clear evidence of how the retail industry pays more than its fair share of tax and how rates stymie investment. The impact is seen in the 6,000 shops lost in the last five years, with a social and economic impact on local communities: in two-thirds of these closures, rates had a material impact on the decision-making process. Over the next ten years, 17,300 more shops could close without action.”
The letter goes on to advise on a 20% ‘retail rates corrector’ to level the playing field, whereby Labour’s manifesto commitment of a tax ‘fairer for bricks and mortar businesses’ could “catalyse the investment from industry that Government has rightly identified as critical to driving economic growth.”
In the letter’s conclusion, the BRC offers to bring together a group of retail CEOs for a more detailed discussion on the topic. The new Labour Government’s first budget will take place on 30 October.
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