Although Tony Blair's party committed itself to a number of policies that are important to retailers, there were no election pledges to have them up in arms.
Labour pledged to cut crime by increasing police numbers and prison places, while developing the use of Anti-Social Behaviour Orders and investing in drug rehabilitation programmes. These policies could all contribute to a reduction in petty theft and violent crime, to which shopworkers have been increasingly vulnerable.
Pensions are set to rise in-line with prices, and pensioners will get a£200 reduction on their council tax. New homeowners will also benefit from an increase of the stamp duty threshold to£120,000. These measures should give consumers in these groups more of a feel-good factor, which could translate into higher spending. However, the majority of consumers are not set to get any meaningful tax or benefit breaks.
Labour is committed to developing charges for road use, similar to the congestion charge in London. This policy is bound to anger retailers, which have claimed rising costs in the capital as a result.
In reaction to the election result, British Retail Consortium (BRC) director-general Kevin Hawkins noted that retailers are facing the most difficult trading conditions in living memory. Consumer confidence is at a low, coupled with ferocious competition on pricing and a rising cost base. He said that even a lowering of interest rates would not spark the rate of upsurge that retailers need.
Hawkins added that retailers are being forced into strategies of efficiencies and innovation, rather than growth to satisfy shareholders. He outlined the aim of finding policies to make life easier for retailers. He said: 'Regulation is the enemy of innovation and a form of taxation. Cutting red tape will put money back into retailers' pockets. We expect action to reduce the burden of regulation from the Government. We want no further tax burden and no rises in national insurance contributions, which Labour pledged to honour in its election campaign.
'We want a reconsideration of the 6 per cent increase on the national minimum wage. We are looking to see tougher penalties for crime and a sensible approach to the health and obesity debate. We're not looking for confrontation with the Government but looking for dialogue to make these things happen.'
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