The recent landslide victory for Labour has prompted calls for economic reforms from independent sectors.
- Andrew Goodacre of Bira emphasises the need for business rate reforms to aid high street retailers.
- Labour’s promise of maintaining the 75% small retailers’ discount is seen as essential for recovery.
- Weather and pre-election uncertainty have recently dampened consumer spending in various regions.
- Labour’s leadership is expected to stabilise the nation after a period of political turbulence.
In the wake of a decisive election outcome, Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), has called on the newly elected Labour government to focus on boosting economic growth. Goodacre highlights the urgent need for reforming the business rates system, describing it as outdated and unsuitable for today’s high street conditions. “As everyone knows, business rates need to change. It’s a tax that is not fit for purpose in today’s high street,” he stated.
The Labour Party, now holding over 400 seats, is expected to follow through on its promises, including business rate reform. However, Goodacre notes that these changes will not occur immediately. “I don’t expect to see business rates change this year [and] I don’t expect any major announcements next year. [Labour has] got a five-year term and the manifesto is set for five years,” Goodacre mentioned in his discussion with Drapers.
Amidst the calls for long-term changes, Goodacre insists that maintaining the 75% discount for small retailers is crucial. He argues that such measures are necessary to foster economic growth and enhance consumer confidence. “That’s the number one priority,” he asserts, believing that increased confidence in spending can revitalise both independent retail specifically and consumer spending in general.
The months leading up to the election were characterised by weak consumer confidence, exacerbated by unseasonably poor weather conditions, as reported by various independent retailers across the UK. Constituencies traditionally voting Conservative experienced a swing towards Labour, further adding to the uncertainty affecting spending behaviours.
Quotes from retailers in regions such as Hexham and Rye illustrate the cautious approach consumers have adopted during this period. In Hexham, the general election was said to have “definitely made a difference” to summer trading. Meanwhile, a retailer in Rye noted that while Labour’s victory was anticipated, “post-election fatigue” coupled with poor weather impacted Friday trade.
Despite these temporary downturns, Labour’s significant majority is anticipated to bring much-needed stability to the UK after experiencing three different Prime Ministers in just two years. “Let’s give [Labour] a chance to see what they can do, and hopefully people will feel a little bit more optimistic,” Goodacre added, reflecting the cautious optimism of the independent retail sector.
Labour’s leadership is poised to stabilise the political landscape, potentially fostering increased consumer confidence and economic growth.
