The British Retail Consortium (BRC) is calling on the Government to support consumer spending in the upcoming Budget and help increase the amount of UK manufacturing of textiles and clothing.
In a submission sent to the Chancellor last week, the BRC proposes a series of targeted measures to support the retail industry in maximising its future contribution to the UK’s success and playing its part in supporting the country through a period of “profound change and uncertainty”.
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Among the recommendations in ‘Helping Shoppers Budget’, is a call for the Government to freeze the business rates multiplier in April of next year which otherwise will increase the bill of every rate payer in the country and simultaneously divert GBP270m (US$356.3m) of retail investment from delivering for consumers and away from local investment.
“At a time of uncertainty for both the economy and the country, it’s important we set ourselves up for success,” says BRC chief executive Helen Dickinson. “The cumulative burden of Government imposed costs has become acute. Indeed, September’s inflation figures mean retailers are faced with a GBP270m leap in their business rate tax bills alone next spring. With retailers’ margins being squeezed to their limit, this is money that could be better spent investing in keeping prices low for consumers, in local communities up and down the country and in developing a workforce which is fit for the future.”
Other suggestions include keeping the cost of living down for consumers by not increasing income tax rates for the majority of taxpayers; considering accelerating increases in the personal allowance if the squeeze on consumers persists; and providing additional flexibility in how apprenticeship levy funds can be spent.
Meanwhile, BRC also recommends the Government works in partnership with retail to enhance the basic digital literacy skills of the large parts of the workforce it says are being left behind by the so-called technology revolution and to increase the amount of UK manufacturing of textiles and clothing.
Finally, the publication urges the Chancellor to ensure business does not face double regulatory charges or new financial burdens from the Withdrawal Bill and makes the necessary investment in infrastructure at ports and border control points to ensure an orderly exit from the EU.
Without the Chancellor’s intervention, Dickinson says the consequences for town centres and jobs will be even more keenly felt in the most vulnerable communities. For consumers, she adds, the squeeze on household incomes will be compounded as the pound in their pocket buys them even less at the checkout.
“Retailers want to help build the confidence of their customers, us all as shoppers, not damage it. But to do this they need the support of Government policy that keeps down the cost of living, not exacerbates it. That encourages, rather than deters the retail investment necessary to meet constantly evolving customer expectations. And finally, policy action that enables retailers to maximise their vital contribution to the Government’s productivity aspirations.”
