In the lead-up to the 2024 UK general election, all major parties have unveiled manifestos impacting the retail industry.
- The Liberal Democrats propose abolishing business rates, replacing them with a commercial landowner levy.
- Conservatives plan a £4.3bn business rates support package aimed at small businesses and online distribution warehouses.
- Labour intends to reform business rates for fairness between high street and online businesses.
- There is no significant mention of VAT-free shopping across party manifestos despite industry calls for its reinstatement.
In the run-up to the 2024 UK general election, the Conservative, Labour, and Liberal Democrat parties have released manifestos detailing their proposed policies affecting the retail sector. The Liberal Democrats aim to abolish business rates in favor of a ‘commercial landowner levy,’ which targets landlords based on the land’s value occupied by tenants. This initiative intends to shift financial responsibility away from businesses.
The Conservative Party has outlined a £4.3bn support package for small businesses over the next five years. Their plan includes increasing the multiplier on distribution warehouses, particularly those supporting online shopping, to reduce the burden on high-street businesses.
Labour’s approach to business rates focuses on fairness and encouraging investment by leveling the competition between high street and online enterprises. However, they have not provided specific details regarding the new system they propose.
International trade policies also display clear distinctions among the parties. The Liberal Democrats propose mending the UK’s strained relationship with the European Union by rejoining the EU’s single market. Meanwhile, the Conservative Party seeks to establish free trade agreements with countries like India and the Gulf Cooperation Council. Labour emphasizes removing unnecessary trade barriers while maintaining a strategic partnership with India without returning to the EU’s single market or customs union.
When addressing apprenticeships, the Liberal Democrats advocate replacing the current levy with a more inclusive skills and training levy. They aim to ensure apprentices are paid at least the National Minimum Wage. In contrast, the Conservatives plan to create 100,000 apprenticeships annually by terminating subpar university courses. Labour proposes a flexible growth and skills levy guaranteeing training or job assistance for young adults.
Retail crime policy varies among the parties, with the Conservatives intending to increase sentences for assaults against retail workers, while Labour plans to create a new offense specifically for such assaults. The lack of emphasis on VAT-free shopping, despite industry leaders’ calls for its return to enhance competitiveness, stands out across all manifestos.
The retail policies proposed by the UK Conservative, Labour, and Liberal Democrat parties exhibit diverse approaches, reflecting their distinct priorities and strategies.
