‘New business secretary’s Body Shop background may be good news for retail’

The sudden resignation from the government of deputy prime minister and Labour deputy leader Angela Rayner might seem a long way from retail, but the consequences will be felt by the industry.

Aside from the wider political implications and Labour Party machinations prompted by her departure, Rayner’s exit sparked a government reshuffle that comes at a crucial time as another Budget looms.

The round of musical chairs has brought a new business secretary, Peter Kyle. He started his career at The Body Shop, where he was mentored by legendary retail entrepreneur Dame Anita Roddick.

Upon his appointment, Kyle posted on the X social network: “I cut my teeth at The Body Shop, being inspired by Dame Anita Roddick.

“I wish she were around to see me appointed Business and Trade secretary.

“The Body Shop grew from start-up to global phenomenon in a decade. That’s the ambition I have for British business.”

So far, so encouraging. But aside from a new business secretary, there are other people to deal with. Because the retail industry touches so many aspects of everyday life it needs to make its voice heard in many government departments – from Defra on food policy to the Home Office on crime and abuse of shopworkers, through to the Department for Work and Pensions all the way to the Treasury.

The people that retailers deal with have changed across the board in the reshuffle, or are changing – for instance, it was not known at the time of writing who would now have responsibility specifically for retail at the business department.

It all means that retailers will have to build relationships with a new set of ministers below the secretaries of state, and they will likely need time to get up to speed on their briefs.

“With his Body Shop background, let’s hope that Kyle will be sympathetic to retail’s importance and its contribution to the country”

The timing is unhelpful, as retailers seek to influence policy in key areas, and after a shock start to relations with Labour after last year’s Budget which heaped costs on companies.

For a start, there’s the Employment Rights Bill. Rayner was particularly associated with a drive towards empowering workers. The bill is expected to come back to the House of Commons imminently after the Lords proposed various amendments welcomed by retailers.

It’s hard to know what will happen, though. On the one hand, prime minister Sir Keir Starmer is advocating a “growth, growth, growth” agenda – an objective which many retailers believe would not be helped by some of the changes proposed on workers’ rights, certainly as originally envisaged. On the other hand, Starmer may face pressure from a restive left to stick to the Bill’s worker-centric ambitions and reject amendments.

Then there’s the matter of business rates. Retailers continue to ram home the message that proposed changes may hit retailers, undermining jobs and potentially even leading to store closures as some shops become unprofitable, damaging the communities in which they operate.

This is all taking place in the run-up to the Budget, when it is feared there could be more tax raids, so all the uncertainty right now is unhelpful.

While the government has disappointed and infuriated many retailers so far, former business secretary Jonathan Reynolds was seen as someone who at least listened to the industry. As time went on, he demonstrated that he could help influence other departments in charge of policy affecting retailers.

With his Body Shop background, let’s hope that Kyle will be sympathetic to retail’s importance and its contribution to the country, and that he will help create the conditions for future success for companies that already include several ‘global phenomena’. Let’s keep them that way.