Yahoo Finance This election is a chance for a historic reset of relations between Government and business
Just two days to go before the nation chooses its next Government and the campaign trail has been full of pledges and photocalls geared towards winning the vote of Britain’s businesses, with ‘growth’ the buzzword among Labour, the Conservatives and the Liberal Democrats.
While politicians have been making promises, I’ve been out speaking to leaders of some of Britain’s most recognisable high street names this week. I have heard first-hand what they want to see from the next Government and listened to their concerns. While many tell me they are reassured by the focus on economic growth in party pledges and are buoyed by a shared commitment across all parties to bring certainty and stability to businesses, they warn that the proof will be in the pudding.
The manifestos launched on the campaign trail rightly address some of the most pressing concerns facing firms today – the rise in retail crime that is affecting shoppers and putting retail staff at risk on high streets across the country, an outdated planning system that is holding back development and investment in our city centres, and a burdensome business rates system which is stifling growth.
But the pledges and promises currently lack the detail needed to deliver real solutions and real growth for British businesses and for London, at a time when our global competitors like Paris, Milan and New York are striding ahead. As the saying goes, the devil is always in the detail, and there is a worrying lack of clarity about future policy direction.
As the Business Improvement District, representing 600 businesses across retail, hospitality, and property in West End, we hear every day from our members the challenges they face and the clarity they need.
The tax burden felt by our members – which include much loved household names including John Lewis, Marks and Spencer and Selfridges - is the most pressing concern. Take business rates, for example. My conversations with our members, who between them employee hundreds of thousands of workers across the U.K., is that our antiquated business rates system is stifling growth, deterring investment, and harming their ability to create well paid secure jobs. But current suggestions of how to reform them by simply looking towards online sales miss the mark and do not reflect the reality of today’s modern multi-channel economy.
On top of that, British retailers continue to trade at a disadvantage to their global competitors, with a knock-on effect on the entire tourism ecosystem – impacting our cultural attractions, our hospitality sector, and our airports. If we are committed to securing London – and the U.K.’s - position as a leading global destination for travel and commerce, reintroducing tax-free shopping is essential. It’s a ready-made solution that would restore the UK’s competitive edge, whilst supporting businesses, supply chains and jobs across the nation.
Meanwhile, an outdated and rigid planning system is holding back investment and development of our high streets and city centres. We need a planning system with enough flexibility to deal with the nuances of modern development, which takes into account economic, social and environmental sustainability in equal measure.
Right now, almost a quarter of people of working-age - nearly 11 million people - do not currently have jobs. Unemployment is at its highest rate since September 2021, when we were still in the pandemic. At the same time, the retail and hospitality industry is facing a chronic skills shortage. To ensure the stability of our businesses and the high street, we must increase the budget for adult skills to help businesses create higher-skilled and better-paid jobs, while delivering a pipeline of talent to support our growth ambitions.
Finally, it is not enough to just provide well paid jobs, it the responsibility of businesses and Government to work together to ensure that retail and hospitality workers are safe and can go to work every day without fear of abuse or assault. We need more visible policing and new legislation to protect retail workers from violence and abuse, and to tackle organised crime and anti-social behaviour that surround these issues.
This roadmap is just the start of how a future Government can help deliver growth. In speaking to our members, there is one call, which comes through loudly and clearly above all else: businesses need a seat at the table. The potential for economic growth is ready and waiting to be unlocked, in the West End of London, as it is across the country. But the key to unlocking this potential will be found in the Government and businesses partnering to create tangible solutions that deliver for all sectors.
This election is a rare opportunity to start afresh and set the tone for how businesses and Government can work together to deliver for Britain. Speaking on behalf of our members, we are ready and waiting to partner with any future Government to help set British businesses up for success and deliver much-needed growth for London and for Britain.
