The bosses of many of Britain’s biggest store chains have joined forces to call on the Government to provide urgent support for the High Street – including help on business rates and a clampdown on shoplifting.
Stuart Machin, chief executive of Marks & Spencer, said this weekend that politicians neither ‘understand nor value’ the importance of the retail sector to the economy.
He blasted ‘inaction’ and ‘increasing regulatory burdens’ for curbing investment in jobs and growth in the industry.
Stuart Machin, chief executive of Marks & Spencer, said politicians neither ‘understand nor value’ the importance of the retail sector
His frustrations are echoed by Alex Baldock, chief executive of the Currys electrical chain.
Nish Kankiwala, chief executive of the John Lewis Partnership, called for a long-term growth plan along with reform of business rates.
Richard Walker, boss of the Iceland frozen food chain, said: ‘We need more sane economic management from the Government, offering a breath of fresh air to clean up the damage inflicted by high inflation.’
The heads of pharmacy chain Boots and the Co-op are both demanding tougher action to combat shoplifting and violence against retail staff.
Machin, who has presided over a revival in the fortunes of M&S, told The Mail on Sunday: ‘I don’t feel that politicians understand or value British retail, and that’s a problem.
‘It’s a sector that employs over 3 million people – that’s 10 per cent of all jobs in Britain – and accounts for more than 5 per cent of our entire economy and pays £17billion in business taxes.’
He added that reducing these pressures would allow retailers to ‘invest in jobs, in skills and in growth – the very things that will get Britain’s economy out of the slow lane’.
Nish Kankiwala, chief executive of the John Lewis Partnership, called for a long-term growth plan
Baldock, of Currys, said the High Street is facing a perfect storm of cost increases that could undermine the fight against inflation.
The National Living Wage for workers over 23 will jump 9.8 per cent to £11.44 per hour from April. Those aged 21 and 22 will be paid the same for the first time – amounting to a 12.4 per cent increase.
The rises in salaries come hand-in-hand with a near-£500million increase in business rates bills for the High Street.
Baldock said: ‘It is going to be counterproductive and will leave inflation higher for longer. It’s not good for employment or investment. Retail is already overburdened.’
Kankiwala, of John Lewis Partnership, said: ‘We need certainty and consistency to give businesses the confidence to invest. There has to be a proper plan for long-term growth that takes us beyond the political cycle.
‘For retailers like the John Lewis Partnership, the tax burden has to be fairer so the Government must prioritise business rates reform.’
Business rates, which are charged on commercial buildings such as shops and pubs, are a key gripe for retailers as they are based on property values rather than financial performance.
The levy has been repeatedly criticised for being outdated, unpredictable and for giving online retailers an advantage over the bricks-and-mortar stores on the High Street.
Many leading retailers also criticised the apprenticeship levy, which Machin described as a ‘missed opportunity’ to improve skills among the British workforce.
Shirine Khoury-Haq, boss of the Co-op, said the ‘current flawed system’ for the apprenticeship levy meant £600million of funding had been sent back to the Treasury when it could have been ‘used for good’.
Khoury-Haq and Sebastian James, managing director of Boots, were among a number of major retailers who highlighted the need for action against shoplifting and assaults on store staff, which have been surging this year.
Many leading retail bosses have backed the Mail’s campaign to scrap the tourist tax, where overseas visitors are charged VAT on purchases made in Britain. This has so far fallen on deaf ears.
