Retail stands as the largest private-sector employer in the UK, with nearly three million individuals engaged in various roles across shops, warehouses, transport, and administrative offices. Among them, 365,000 are affiliated with Usdaw, encompassing a diverse range of workers from those seeking flexible schedules to experienced retail professionals who have advanced to managerial positions without formal qualifications.
When considering the broader supply chain, including farmers, drivers, warehouse staff, and service providers, it becomes evident that retail plays a central role in the everyday economy. However, the sector has faced significant challenges in recent years.
Over the past decade, the retail industry has witnessed the loss of 350,000 jobs, with 100,000 of those occurring just in the last year. Additionally, more than 10,000 shops closed their doors in the previous year alone, impacting both individual livelihoods and the vitality of local high streets.
In response to these challenges, the government has proposed a permanent reduction in business rates for retail, hospitality, and leisure establishments. Currently, despite comprising only 5% of the economy, the retail sector contributes over 20% of all business rates, creating an imbalance that disproportionately affects community-based retail businesses.
To finance the proposed changes, the Treasury is contemplating raising business rates for large non-domestic properties, which could inadvertently impact supermarkets and anchor stores that employ a significant portion of the retail workforce. Such a move could lead to reduced working hours, store closures, and job losses, ultimately affecting prices for consumers.
It is essential to recognize that additional costs, such as energy expenses and investments in employee safety, have already strained retail businesses. By excluding shops from the higher business rates band and reallocating the burden to larger commercial properties, the government can ensure a fairer distribution of costs without imposing extra financial pressure on working individuals.
Looking ahead, a collective effort is needed to secure a prosperous future for retail workers, local economies, and consumers. By prioritizing sustainable business practices and fair taxation policies, stakeholders aim to safeguard the vitality of high streets and promote job security and economic growth within the retail sector.