The Spring Budget 2024, presented by Chancellor Jeremy Hunt, has been met with mixed reactions, particularly from the retail sector.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), has expressed disappointment and concern regarding the government’s approach and its potential impact on businesses, jobs, and communities across the UK.
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Dickinson’s statement delivers a penetrating critique of the budget’s impact on the retail industry:
Retail sector under strain
In her response to the Chancellor’s Budget, Dickinson highlighted the challenges facing the retail industry.
She emphasised the significance of the sector, which employs three million people and invests over £17bn annually. However, despite its potential for growth and innovation, Dickinson lamented the lack of support and vision outlined in the Budget.
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Business rates burden
One of the key concerns raised by the BRC is the substantial increase in business rates, which Dickinson described as “whopping.” The Chancellor’s decision to implement a 6.7% tax rise in April has drawn criticism, especially in the context of lower inflation forecasts.
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By GlobalDataDickinson argued that this rise, coupled with other cost pressures in the supply chain, threatens jobs and investment in the retail sector.
Missed opportunities for growth
Dickinson also expressed disappointment over the government’s failure to address longstanding issues such as the lack of a tax-free shopping scheme in the UK.
She highlighted research showing that the economy is losing £11bn annually due to the absence of such a scheme, which could boost tourism and spending nationwide.
Concerns over inflation and cost of living
While measures to cut national insurance, alcohol, and fuel duties were acknowledged as potentially beneficial, Dickinson warned that their impact could be undermined by rising inflation.
She urged the government to consider the cumulative effect of its policies on retailers and consumers, particularly in light of additional costs imposed by new regulations.
Safety of retail workers
Another pressing issue highlighted by Dickinson is the safety of retail workers. Despite the Chancellor’s claim that crime rates have decreased, incidents of violence and abuse against retail workers have surged.
Dickinson called for stronger measures to protect employees, including the introduction of a new offence for assaulting or abusing retail workers.
Flaws in apprenticeship levy
Furthermore, Dickinson criticised the government’s handling of the Apprenticeship Levy, describing it as inflexible and outdated.
She argued that the current system hinders retailers from investing effectively in their workforce and deprives many individuals of valuable training opportunities and career progression.
The takeaway
Ultimately, the BRC’s response to the Spring Budget 2024 reflects deep-seated concerns within the retail industry.
Despite the government’s efforts to stimulate economic growth and support households, there are clear gaps in its approach that could have far-reaching consequences for businesses, workers, and communities across the UK.
As the Chancellor’s Budget comes under scrutiny, it is imperative for policymakers to address the pressing issues raised by industry leaders like Helen Dickinson to ensure a more resilient and inclusive economy moving forward.
