Retailers call for strong leadership and high street support from new PM

The retail industry has urged Liz Truss to work alongside the sector and provide “strong leadership” amid the deepening cost-of-living crisis, as she succeeds the role of prime minister today (6 September).

The British Retail Consortium (BRC) said that while the retail industry is ready to work with the new government, businesses “need clarity” on the government’s plans as soon as possible so they can “understand the inflationary impact of any policy decisions”.

It also called on the new PM to freeze the business rates multiplier for all retail businesses for the next financial year in order to protect the sector from rates increases.

Helen Dickinson OBE, CEO of the BRC, said: “I’d like to congratulate Liz Truss on becoming leader of the Conservative Party. She will need to demonstrate strong leadership as the cost-of-living crisis deepens. Retailers continue to play their part, keeping prices as low as possible and helping households by offering discounts to vulnerable groups, expanding value ranges, raising staff pay, and offering reduced-cost or free children’s meals. 

“The retail industry is ready to work with the new government to shore up consumer confidence and help deliver economic growth. Businesses need clarity on the government’s intentions as soon as possible so they can understand the inflationary impact of any policy decisions.”

She added: “One immediate way the Government can help retailers support their customers is to freeze the business rates multiplier for all retail businesses for the next financial year, protecting the industry from rates increases linked to inflation, and giving greater scope to hold down prices, protect jobs, and support the economy.”  

Meanwhile, the British Independent Retailers Association (BIRA) has called on Truss to “immediately” address the economic challenges facing the country, urging the new PM to target high street support in particular. 

The group said that financial support should be given to smaller retailers who are facing 50% increases in energy costs, adding that Truss needs to bring forward a Covid-19 type response by introducing a 100% rates relief for the rest of this tax year.

In order to improve consumer confidence for the final quarter of the year, it added that the new government must tackle the cost-of-living crisis by halting increases to energy bills, and that reducing VAT “should also be considered”.

In the medium term, it said the government needs to introduce a grant or loan system that encourages smaller businesses to invest in energy saving technology, “therefore reducing the demand for energy”. It suggested this could also be done in the form of tax breaks and wholesale reform of the business rates system.

Bira’s CEO Andrew Goodacre said: “We hope that as well as campaigning to secure the votes, the new Prime Minister has also been working on plans to address the immediate economic challenges, both short term and medium term.

“Bira has been raising concerns since last October and we have continued to work with government departments to help them understand the challenges faced by retailers and the high street in general.” 

He added: “Independent retailers are integral to high streets. High streets are integral to communities and so they need support and protection from this toxic economic situation. For many smaller retailers, Covid-19 has drained them of cash and we must not let perfectly viable businesses disappear from the communities they serve.”