The fashion retail industry has responded rapidly to Labour’s landslide victory in the UK general election.
- Labour’s commitment to reforming business rates and protecting retail workers has been welcomed.
- Industry leaders are urging swift action from the new government to meet its pledges.
- Concerns about retail crime continue to dominate discussions within the industry.
- Uncertainty about the future of tax-free shopping remains a key issue.
The fashion retail industry is quick to articulate its expectations following Labour’s sweeping victory, which secured more than 400 seats. Leaders within the sector are vocal about their hopes for changes that could bolster growth and development. Helen Dickinson, chief executive of the British Retail Consortium, emphasised the pivotal role of retail as a major source of employment and investment nationwide. She highlighted retail’s potential to support Labour’s policy objectives, specifically through commitments to business rates reform, planning, and the apprenticeship levy. The industry awaits detailed plans on implementing these commitments.
Dee Corsi, chief executive of the New West End Company, expressed optimism about Labour’s promises to stimulate economic growth and combat retail crime. She underscored the necessity for Labour to collaborate closely with businesses in crafting effective policies within the first 100 days of governance to enhance investments and revive high streets.
Paddy Lillis, general secretary of Usdaw, contrasted Labour’s proactive stance with what he described as years of Conservative inaction regarding workers’ rights and retail crime. Labour’s agenda includes establishing a living wage and abolishing the £200 prosecution threshold for shoplifting, aligning with the industry’s call for enhanced worker protections.
Jacqui Baker from RSM UK pointed out the trepidation surrounding Labour’s pledge to overhaul business rates. The industry sees this as vital, given that retail disproportionately shoulders 22% of total rates. Meanwhile, while Labour has reassured on addressing anti-social behaviour against shop workers, the absence of an immediate commitment to restoring tax-free shopping leaves some concerns unaddressed.
Caroline Rush of the British Fashion Council advocates for the restoration of the VAT Retail Export Scheme to invigorate the sector. She also calls for legislative support to promote sustainable business practices. Rain Newton-Smith from the Confederation of British Industry endorsed Labour’s focus on sustainable growth, whilst urging rapid decision-making to energise the economy.
Scott Parsons of Unibail-Rodamco-Westfield sees Labour’s win as an opportunity to recalibrate the relationship between business and government. Top priorities include reforming business rates and abolishing tourist tax to save high streets and enhance UK’s global competitiveness. Several voices in the industry resonate with the sentiment that while Labour’s win brings a welcome stability, the true test lies in their ability to fulfil these ambitious promises.
The fashion retail industry remains hopeful yet cautious, keenly anticipating whether Labour will deliver on its election promises.
