Yahoo Finance Election 2024: Business rates the immediate focus for retail as sector responds Labour landslide
UK retailers have cautiously welcomed Labour’s landslide election victory, but urged Sir Keir Starmer to follow through on a number of manifesto pledges, including business rates.
Leading industry figures have reacted to Labour’s historic victory overnight, saying they now “look forward to getting down to business” with the new government.
In the run up to the election, they were cautious over the next government’s approach to business rates, as Labour were tight-lipped on any possible tax rises.
The party had previously said it would reform business rates to ‘level the playing field’. In June, the New West End company was among groups to urge “comprehensive” change, while last year the boss of Frasers branded the existing regime a “disaster”.
As part of its plan Labour said it would “replace the business rates system, with a new system that will level the playing field between the high street and online giants”.
Helen Dickinson, chief executive of the British Retail Consortium, welcomed Labour’s election win saying “retail is an important source of employment and investment in every part of the country, and through its scale and reach can make a big contribution to Labour’s policy goals.”
“Finding ways to unlock this contribution over the next five years should be a shared endeavour between the new government and the retail industry.”
She added that Starmer “made some crucial commitments for retail, from reforming business rates, planning and the apprenticeship levy, to introducing a specific offence for assaulting a retail worker, and we now await the details of how these will be taken forward.”
In the coming days, weeks and months, Labour will be appointing new ministers and laying down detailed policy. After having won more than 400 seats with a huge majority, it should be able to pass legislation with relative ease.
Dickinson continued that the new party of government “recognised that the business rates system is broken.
“With retail paying 22 per cent of the total rates bill while accounting for five per cent of the economy, it is the number one thing in the way of increased retail investment which could unlock growth across the economy.”
Dee Corsi, chief executive of the New West End Company, added that the results over night “will bring much-needed certainty to businesses across the capital.”
“Labour’s promise to deliver economic growth for Britain is reassuring for all who want to see our high streets thrive, and the new Government’s commitment to tackling a troubling rise in retail crime, reforming the outdated planning system holding back investment, and revising the burdensome business rates system is encouraging.”
Now, over the next 100 days, we must see swift action to turn these pledges into credible policies, constructed in close dialogue with the business community.”
Corsi warned Labour that if “is truly committed to delivering growth for the UK, it is absolutely critical that businesses are invited to help shape the solutions to these thorny issues.
“As the voice of over 600 businesses with a presence in the West End and nationally, we are ready and waiting to partner with Labour to inform policies which will deliver on our shared vision for growth and restore the U.K’s competitive edge on a global stage.”
Alex Baldock, chief executive of Currys said: “Retail matters.”
We account for three million jobs and £17bn of tax, and can play a starring role in helping the new Government power growth, jobs and prosperity for all.”
“Retailers are looking for stability, of course, but also for Government to provide the conditions for growth, through better skills, infrastructure and planning.
Most of all, we must urgently fix the broken, damaging and unfair burden of business rates. We urge the Government to consult and act on all of this and, as they do so, we at Currys will engage with them all the way.”
