Retail calls on Truss and Sunak to address business rates failings

No comments

The British Retail Consortium has written to both Conservative leadership contenders to outline the sector’s concerns ahead of the ballot result on September 5.

In the letters to both Liz Truss and Rishi Sunak, seen by Retail Week, BRC chief executive Helen Dickinson called for the next prime minister to scrap downwards phasing of transitional relief, arguing it artificially inflates business rates and forces firms in poorer regions of the country to effectively subsidise those in richer areas.

Dickinson said: “Business rates have hindered investment and continue to directly undermine the viability of shops, particularly in the areas most in need of levelling up. Downwards transitional relief should be removed to allow businesses to move to their ‘correct’ rate bill from day one following the 2023 revaluation.”

She also reiterated BRC research published in July that said government failure to scrap downwards phasing would cost the retail sector £1bn over the next three years.

In the letters, Dickinson asked both candidates to commit to introducing four “targeted flexibilities” to the government’s existing pay apprenticeship levy to ”unlock untapped potential in the labour market”.

These are: funding pre-employment courses; allowing businesses taking on apprentices to use some of the funding to cover the cost of back-filling roles when apprentices are on off-the-job training; providing short courses covering functional and digital training; and allowing levy payers in the devolved nations to directly access funding.

Deep dive: Is your business recession-ready?

Dickinson also called for a general strategic review of legislative and regulatory interventions impacting the sector’s ability to meet its sustainability agenda – from extended producer responsibility around packaging through to differing deposit return schemes across the UK, adding that “the weight of regulation is in danger of becoming unsustainable”.

She reiterated retail’s importance to the UK’s economy – noting it contributes almost £100bn to the economy annually and employs 14% of private sector workers in the UK.

The Conservative Party leadership election has been running since July 14, following the resignation of Boris Johnson the previous week.

The next prime minister will be decided by a ballot of Conservative Party members and will be announced on September 5. The latest polls show foreign secretary Truss well ahead of former chancellor Sunak.