At the BRC, we believe that for consumers and business to thrive, stability means plans from the next Government that put consumers first.
That holds true in the Brexit negotiations and in economic policies that promote a pioneering, responsible and vibrant industry for the future.
The retail industry is a driving force in our economy and employs more than three million people. It is also undergoing a profound transformation.
Retailers are looking to address the changing face of retail and keep prices low for consumers, as the impact of structural change in the industry is compounded by building cost pressures and intense competition.
The risks and opportunities posed by our forthcoming negotiations with the EU sit against these lightning changes taking place in the industry.
Brexit matters most
Brexit affects a number of issues across retail, but its main impact hinges upon the UK’s future trading relationship with the EU.
This is especially important for food as over three quarters of our imported food comes from the EU, so it is this deal that matters most to UK consumers.
“It’s vital that the next Government secures tariff-free trade with the EU if retail is to grow”
It’s vital that the next Government secures tariff-free trade with the EU if retail is to grow and continue providing consumers with diverse product ranges at affordable prices.
An orderly and sequenced process should come before looking to seize opportunities of new trading arrangements with the rest of the world.
Here there is an opportunity to play for, given that nearly two thirds of our non-food comes from countries with which there are no existing deals with the EU.
Alongside the trade aspect of what a fair Brexit for consumers looks like; the next Government needs to provide continuity and certainty for the UK.
This it can achieve by securing a transitional arrangement that avoids a cliff edge scenario; guaranteeing the rights of the 100,000- 200,000 EU nationals living and working in the UK; and directly translating existing EU regulation into UK law to with minimal changes.
The challenges we face as we negotiate our future relationship with Europe makes it essential for policy makers to understand the rapid change and testing conditions that retail must operate in.
“Economic uncertainty has made reducing the burden of business rates and reforming the system even more critical”
With prices and wages moving in opposite directions, retailers will have to compete even harder for the increasingly scarce pounds in shoppers’ pockets. Fundamentally, this means three things for the Government.
Firstly, economic uncertainty has made reducing the burden of business rates and reforming the system even more critical.
We continue to believe that the future of the business rates system will shape investment and growth in the UK economy for decades to come.
“Digital infrastructure underpins growth, stimulates innovation and improves productivity”
How the next Government decides to build a business taxation system fit for purpose in the 21st century is therefore a key question for us all.
Secondly, there are economic rewards to be gained from the Government accelerating its investment in digital infrastructure and enabling businesses to develop the required new and digital skills faster.
Digital infrastructure underpins growth, stimulates innovation and improves productivity across the economy.
Thirdly, businesses should be empowered to do the right thing.
On an international scale, many retailers understand the role they play in the global community and make significant investments every year.
They need to be allowed to build on the progress already made in stamping out labour abuses and ensuring the products we buy are sustainably sourced.
From the Brexit negotiations, through to tax, infrastructure and corporate governance, retail will be hoping for a plan from the next Government that supports its mission to drive productivity with better jobs, innovation and investment to improve the communities it serves.
Seeing retail through Brexit and beyond underpins the journey to securing our economic future and continuing to deliver for consumers.