Andrew Goodacre of BIRA calls on Labour to address economic growth and consumer confidence post-election.
- Labour’s election victory presents an opportunity to re-evaluate the business rates system affecting retailers.
- Immediate reforms are unlikely, but maintaining a 75% small retailers’ discount is essential.
- Uncertain political climate and weather have impacted retail sales across previously Conservative areas.
- A stable Labour government is seen as a potential boost to national morale and market stability.
Andrew Goodacre, CEO of the British Independent Retailers Association (BIRA), highlights the urgent need for the Labour Party to focus on boosting consumer confidence and economic growth following their substantial election victory. With Labour securing over 400 seats, there is now a significant opportunity to address longstanding issues like the business rates system, which Goodacre argues is outdated and ill-suited for today’s retail environment.
Goodacre emphasizes that although Labour has the capability to make these changes, immediate reform of business rates is improbable. Adjustments to this system, according to Goodacre, are not expected before 2026, as Labour’s current manifesto outlines a five-year plan. Hence, maintaining the current 75% discount for small retailers is of utmost importance.
The election period was marked by weak consumer confidence exacerbated by inclement weather, severely affecting sales. This was particularly noticeable in areas with historical Conservative leanings, which became highly contested in the recent elections. Retailers in these regions reported a cautious consumer base, with spending deeply influenced by political uncertainty.
Post-election, Labour’s victory provides a semblance of stability after a period characterized by three different Prime Ministers within two years. Goodacre suggests that this stability may lead to an increase in consumer optimism and spending, fostering a healthier retail environment. Retailers anticipate that as the political climate settles, consumers will regain confidence, leading to an improvement in spending habits.
Labour’s governance offers potential for enhanced consumer morale and retail stability, vital for economic recovery.
