As the 2024 general election approaches, voters are scrutinising retail policies from the Conservative, Labour, and Liberal Democrats.
- The Liberal Democrats propose replacing business rates with a ‘commercial landowner levy’ aimed at landlords.
- The Conservative Party offers a support package of £4.3bn for small businesses and plans to increase taxes on distribution warehouses.
- Labour aims to redesign the business rates system to create fair competition between online and high street businesses.
- Each party is also focusing on international trade, apprenticeship schemes, and retail crime, albeit with differing emphases.
As the UK prepares for the 2024 general election, the manifestos of the three major parties reveal distinct approaches to retail policy. The Liberal Democrats are advocating for the replacement of the current business rates with a ‘commercial landowner levy.’ This proposal aims to shift the tax burden from tenants to landlords, calculated based on land value.
Conversely, the Conservative Party has pledged a £4.3 billion support package over five years to relieve small businesses. They also intend to raise the multiplier on distribution warehouses, which is expected to alleviate the business rates pressure on high street retailers.
Labour, on the other hand, is seeking to overhaul the business rates system entirely to maintain revenue while promoting equitable conditions for both high street and online businesses. However, details of this proposed system remain undisclosed at this time.
In terms of international trade, the Liberal Democrats intend to mend the UK’s fractured relationship with Europe and aim to rejoin the EU’s single market. They propose a new agreement to minimise trade barriers.
The Conservatives are prioritising the completion of free trade agreements with countries like India, the Gulf states, the US, Israel, and Switzerland. Meanwhile, Labour wants to eradicate ‘unnecessary trade barriers’ but does not support rejoining the EU’s single market or customs union.
The current apprenticeship levy, criticised by the British Retail Consortium as an ’employment tax on retailers,’ is another area of focus. The Liberal Democrats propose a more flexible skills and training levy, while the Conservatives are committed to creating 100,000 apprenticeships annually. Labour plans to substitute the levy with a more adaptable growth and skills levy offering training and employment opportunities for young people.
Retail crime is also addressed differently; the Conservatives plan to increase sentences for assaults on retail workers, whereas Labour is working on creating specific offences for these assaults. Although the Liberal Democrats have not outlined specific plans for retail crime, they focus primarily on business rate reforms.
Finally, the Drapers Fashion Retail Manifesto calls for the reinstatement of the VAT Retail Export Scheme, also known as tax-free shopping, which was not addressed in any party’s manifesto.
The 2024 election presents distinct retail policy choices, reflecting varied priorities and approaches.
