Member News
24th December 20112011 has been a tough year for the retail sector, writes Jane Bevis, director of public affairs at the British Retail Consortium.
Things were supposed to get better in 2011. With a coalition government, 'united in the national interest', a plan for growth and a fiscal austerity programme, the sunny uplands of recovery were supposed to be in sight by now. Instead consumer confidence remains at rock bottom and Christmas is only providing small respite from flat-lining retail sales figures.
The BRC has long argued the government needs to free retail - the largest private sector employer - from cumbersome rules that hamper jobs growth. But it's Red Tape Challenge has failed to deliver significant reductions in regulation. There have been many good ideas talked about but to date little concrete action.
2011 has also been the year of levies. Retailers are facing the spectres of two new taxes, from the Scottish government and the Northern Ireland executive. The large retailer levy in Northern Ireland has been improved during its journey through the legislative process, but retailers are in danger of suffering millions of pounds of extra cost at a time when retail sales volumes are falling. In Scotland, finance secretary John Swinney has dressed up last year's failed large retail levy as a public health levy, to be paid solely by large retailers selling both tobacco and alcohol. The levy will neither improve public health in Scotland nor support economic growth.
Despite red tape persisting and tax burdens mounting, the independent report into the future of high streets, led by TV retail guru Mary Portas, has given cause for hope. Many previous reports have looked at the woes of the high street but it provided another welcome opportunity to examine what can be done to aid our ailing town centres. Many of the recommendations echoed those from our own study, 21st Century High Streets. Again there is a clear need for urgent action. Unless the recommendations make it off the page a valuable opportunity will have been missed.
As our monthly retail figures show, 2011 has been tough. Limited sales value growth has been achieved at the expense of margins and is dwarfed by inflation. For 2012 to be brighter the UK's governments must try harder. They have to liberate retailers so they can maximise their contribution to economic recovery.
My end of year report card says – some mistaken intentions, some good ones but should be achieving much more. I hope its not a message I'll be repeating a year from now.
Dods Parliamentary Communications Ltd