Chancellor Rachel Reeves is set to present the new Labour government’s inaugural Budget, a pivotal moment that could reshape the fiscal landscape for the grocery sector in the UK.
Business leaders within the grocery sector are keenly awaiting the potential overhaul of business rates. Stuart Machin, CEO of a leading retail chain, expressed concern over the government’s ability to deliver on its manifesto promises, especially regarding business rates reforms and apprenticeship levy flexibility. Similarly, Shirine Khoury-Haq, CEO of a major cooperative, highlighted the need for a fairer business rates system, citing a significant increase in rates over recent years. Khoury-Haq emphasised the necessity for equitable tax contributions from online platforms to support high street revitalisation.
The Association of Convenience Stores, represented by CEO James Lowman, stated that local shop owners might face massive costs due to new regulations. Lowman called for a fair distribution of tax burdens, recognising the indispensable role played by local shops across communities.
Employment rights are also a focal point, with stakeholders like John Lewis Partnership CEO Nish Kankiwala voicing support for the government’s economic growth intentions, whilst remaining watchful of forthcoming employment legislation. Co-op’s Khoury-Haq noted the government’s proposed workers’ rights align with practices her organisation has already adopted.
In the realm of farming, Guy Singh-Watson, a prominent advocate for agricultural fairness, urged the government to enhance the Groceries Code Adjudicator’s powers. Singh-Watson proposed initiatives to connect consumers directly with local produce, promoting genuine support for British farmers. Tom Bradshaw, President of the National Farmers Union, called for the redirection of unused agricultural funds to assist the farming industry.
Concerns over National Insurance have risen, with Stuart Machin criticising potential increases, describing them as detrimental to job creation. Interest rates also remain a crucial issue, with Sainsbury’s CEO Simon Roberts urging for reductions to bolster household spending.
The wine industry, represented by figures like WineGB CEO Nicola Bates, advocates for duty cuts to stimulate growth, suggesting that high duty rates hinder the sector’s expansion. Miles Beale, Chief Executive of the Wine & Spirit Trade Association, warned of adverse effects from removing wine easements, which could discourage international wine exportation to the UK.
Lastly, the ongoing battle against obesity and unhealthy diets was highlighted by nutrition leaders advocating for comprehensive reforms to encourage healthier eating habits. The importance of consistent legislation across the industry was underlined by Tesco’s health head, Oonagh Turnbull, who pointed out the effectiveness of past reforms in driving significant changes.
The upcoming Budget presents a critical opportunity for the government to address pressing issues within the grocery sector. Stakeholders are hopeful for reforms that will promote fairness and support growth across the industry, benefiting businesses and consumers alike.
