ePolitix.com speaks to Stephen Robertson, director general of the British Retail Consortium
Why does the general election matter to the retail sector?
One in every eight UK households includes someone employed in retail, so what matters to us matters to the country. Whoever forms the next government, retail is bound to be affected by their policies on the economy, taxation, the environment, food, employment, planning, consumer issues and public health.
As retail generates around 8 per cent of UK GDP, our sector is at the heart of the debate about how best to manage the economic recovery. In addition, many of the issues that most concern the public - the state of our town centres, crime, climate change – are of direct relevance to the retail sector.
Which political issues matter most to the sector at this election?
Our General Election 2010 web portal (www.brc.org.uk/election2010) includes a great summary of the issues that most affect our sector. We have also published our vision for maintaining a vibrant retail sector in the months and years ahead. Retail: Delivering Sustainable Recovery sets out our priorities, which are: maintaining employment, reducing costs and developing a competitive framework.
We know that the public sector deficit must be reduced - however, we don't believe that the planned 1 per cent rise in National Insurance contributions is the best way to do that, as it will inevitably hit employment. We strongly support the principle of the national minimum wage, but it must not rise so fast as to generate excessive extra costs for employers who have already been hit hard by the recession. We therefore don't want it to increase it any faster than the increase in average wages.
When it comes to reducing costs, we would ask government to suspend the introduction of business rate supplements. They should not be introduced without a proper ballot of local businesses. Empty property rate relief should be reinstated in full.
We also really need the best possible competitive framework for UK retailers, in what is increasingly a global industry. Any UK government should continue to champion free trade against protectionism and work effectively within the EU to shape single market legislation. We want regulation to be proportionate and evidence-based without over-enforcement. National retailers have complex operations, so new laws must be framed to take this into account, including with workable lead-in times.
What has the BRC been doing to promote retail in the run-up to the election?
We've continued to engage with all the major parties on the full policy agenda affecting retail. As well as regular meetings with ministers and officials in government, we've spent a lot of time talking to backbench MPs and key people from the opposition parties. Whoever wins the election, the BRC will maintain a fruitful dialogue with government about how the retail sector can best prosper as part of the wider UK economy.
Retail: Delivering Sustainable Recovery has been sent to all MPs and many candidates, with a number having arranged to meet us in response. We also provide the secretariat of the all party retail group, which has had a number of lively meetings, including most recently on retail skills. We've been inviting our members to a series of political lunches with key speakers and, of course, we had a strong presence at last year's party conferences. Parliamentary candidates have also been made aware of our general election 2010 web portal as a convenient way of understanding why retail matters to every constituency and feedback on this has been excellent.
The BRC also has a high media profile and we have been a regular commentator in the run-up to the election on the full range of retail issues.
As well as focusing on Westminster and Whitehall, we also work with the devolved administrations in Belfast, Cardiff and Edinburgh, including through the Scottish Retail Consortium. We also maintain a strong presence in Brussels, as EU regulations have a deep impact on UK retailers.
What three things would the BRC like the government to do after the election – regardless of who wins?
The one thing retailers want most of all is stability. Retail businesses have to think long-term and plan ahead to maintain their competitive edge and understand their cost base. So, political uncertainty is of particular concern to them. Regardless of the result of the general election, much change is ahead to reduce the deficit and aid the UK in its economic recovery. The BRC urges the next government to set a clear policy direction and to stick to it, to allow businesses stability as they help bring the UK back into prosperity.
We would also like the government to prioritise the better regulation agenda. As public spending comes under increased pressure, this is an ideal time to also ensure any proposed regulation is proportionate, evidence-based and properly enforced and does not come with a costly implementation price tag, which further limits retailers' ability to drive growth.
As identified in Retail: Delivering Sustainable Recovery, another key area we believe the government needs to prioritise is employment policy. The retail workforce is one of the UK's most diverse, comprising 62 per cent women, 13 per cent disabled workers and 12 per cent ethnic minority workers and the sector offers many part-time roles as well as excellent flexible working opportunities. The sector is also deeply committed to developing its staff and has an outstanding record on skills. To maintain this record, retailers need future employment legislation to be flexible and for the skills landscape to be made as simple as possible so retailers large and small understand the tools and support that are available.
Most importantly it is vital the retail sector is not overlooked by government as being a vital economic driver of growth and jobs within the UK.
What do you think will be the most important issues post-election?
Tackling the budget deficit and securing the economic recovery are dominating the campaign and will also be the main issue post 6 May. The BRC believes this is the correct course of action – we have to ensure that the UK can continue to compete on the world stage and a stable economy is a vital component of that.
Employment issues will also be hugely important. The government and business alike will be keen to minimise job losses and the retail sector is particularly alive to this, both as an employer and as an industry reliant on consumer confidence.
Where can people find more information about the BRC and the election?
The general election web portal is the best place to go for information. This highlights just how vital the UK's retail sector is to each constituency across the UK and also provides a snapshot of the issues of most importance to the sector. It is an essential website for all those seeking an understanding of retailing.
Our key publications can also be downloaded from the portal, including Retail: Delivering Sustainable Recovery, our vision for maintaining a vibrant retail sector as we emerge from the downturn.
For further information on the retail sector and the BRC, please visit www.brc.org.uk/election2010.
