Andrew Goodacre of Bira stresses the need for Labour to focus on boosting consumer confidence as they tackle economic growth.
- The Labour Party’s significant election victory puts them in a strong position to implement promised reforms.
- Reforming the outdated business rates system is identified as a crucial step for the economy.
- Maintaining the small retailers’ discount is recommended to support independent retailers.
- Weak consumer confidence, exacerbated by poor weather, has led to declining sales during the election period.
Andrew Goodacre, the CEO of the British Independent Retailers Association (Bira), has highlighted the critical need for the Labour Party to prioritise boosting consumer confidence. With Labour’s landslide victory and over 400 seats won, there’s a clear opportunity for them to fulfil their economic promises.
Labour’s pledge to reform the business rates system is particularly emphasised by Goodacre. He notes that the current system is outdated and unsuitable for today’s high streets, although he acknowledges that any changes are unlikely to occur before 2026. The party’s five-year manifesto suggests a timeline that requires patience from the business community.
To support small retailers in the interim, Goodacre advises maintaining the current retailers’ discount at 75%. He believes this measure, alongside efforts to stimulate economic growth, is vital for restoring consumer confidence. He asserts, “That’s the number one priority. If we can get growth, and retail can be part of growth, we can get people getting more confident in spending money – not just on independent retail, but in general.”
During the election campaign, consumer confidence weakened, compounded by unseasonably cold and rainy weather, which further affected retailers’ sales. This period saw significant political shifts, particularly in historically Conservative areas where voter behaviour changed noticeably.
In Hexham, for instance, a constituency long held by the Conservatives, the election results marked a shift with Labour MP Joe Morris’s victory. A menswear shop co-owner noted the election’s impact on summer trade, citing consumer caution amid the political change.
Similarly, in the Hastings and Rye constituency, the Labour win was anticipated, yet independent retailers reported post-election fatigue contributing to sluggish sales. The sentiment was echoed in Carlisle, as constituents adjusted to Labour’s success after years of Conservative representation.
Goodacre expressed optimism that Labour’s majority could bring stability after the recent political turbulence. He urged giving the new government a chance to implement its agenda, hoping it would foster a more optimistic consumer outlook.
Labour’s victory offers a unique opportunity to address economic challenges and bolster consumer confidence for the benefit of independent retailers.
