Retail membership organisations and stakeholders have said the chancellor has missed an opportunity to help the retail sector with his winter economy plan.

While Rishi Sunak singled out the hospitality and tourism sectors as being particularly hard hit by the coronavirus crisis, the retail sector has also suffered and many stakeholders believe he should have done more to help. 

Shopworkers’ union Usdaw chief executive Paddy Lillis described the chancellor’s measures today as a “missed opportunity to be bold and implement meaningful action to rebuild the retail industry”.

He said: “We are pleased that the chancellor has eventually stepped back from the cliff edge ending of the jobs retention scheme and we will study the details of the new jobs support scheme. However, we are very disappointed that he made no mention of the deep difficulties the retail industry faces.

“The coronavirus pandemic has had a profound impact on retail. So far this year, 125,000 jobs have been lost in retail and 14,000 shops have permanently closed. The chancellor today needed to demonstrate the government will work with unions and employers on an immediate recovery plan that will give targeted support to retail.”

The BRC welcomed the chancellor’s job support scheme but warned that the biggest threat to retailers was the end of the business rates holiday in April. 

BRC director of business and regulation Tom Ironside said: “We welcome the chancellor’s job support scheme, which will help reduce job losses for eligible companies. Furthermore, the VAT reduction for cafes and food-to-go will be welcomed as many continue to suffer as a result of low footfall and the government’s ‘work from home if possible’ guidance. We look forward to seeing the details of the additional flexibilities on loans and tax deferrals that have been announced.

“Retail is on a delicate path to recovery but the looming threat to this remains the £8bn business rates cliff edge from April 2021. Retailers need certainty and the chancellor must take action and bring down the business rates burden in order to avoid unnecessary job losses and shop closures.”

Altus Group head of property tax Robert Hayton said today’s statement was a missed opportunity to deliver discerning targeted support to help with business rates bills from next April. He said: “There are 358,264 retail, leisure and hospitality premises, which will be returned to full business rates during 2021/22 after having had a £10.13bn rates holiday in England this financial year. This could create a cliff edge.”

However, hospitality businesses and delivery apps such as Deliveroo were broadly more positive about the announcements. 

Deliveroo chief executive Will Shu said: ”Deliveroo and our restaurant partners called on the government to extend the VAT reduction for the hospitality sector and we are delighted they have done so. This will make a huge difference to thousands of restaurants across the country. 

“The industry has worked incredibly hard to get back on its feet over the past few months, but with new restrictions being put in place this tentative recovery would have vanished overnight without this additional support.”

However, he added a note of caution about the potentially catastrophic effects of a second lockdown

“The sector still faces significant challenges. Should more stringent lockdown measures be required, this could have a devastating impact on restaurants and the government must be prepared to put in place an even stronger financial package in future.

“Deliveroo will keep working with our partners and the government to ensure that restaurants get the vital support they need to survive and continue to make a valuable contribution to our economy,” he said.