The British Retail Consortium (BRC) has launched a new policy document targeting Greater Manchester mayor Andy Burnham, urging him to collaborate with business leaders to overhaul employment costs, business rates, and energy regulations. The Buy into Retail Manifesto argues that without significant reform, the sector risks losing the momentum needed to sustain jobs and growth.
Costs and Job Security
Retail employs 2.8 million people across the United Kingdom. However, the BRC claims that rising expenses are threatening this workforce. The organization notes a £6.5 billion increase in employment costs and National Insurance contributions over the past two years. These financial pressures have already resulted in the loss of 400,000 jobs over the last decade, according to the group.
Helen Dickinson, the chief executive of the BRC, stated that retail acts as the “everyday economy,” serving as a primary source of income for millions. She suggested that while competition can drive prices down, cumulative costs and fragmented policy decisions are currently hindering the industry. Dickinson noted that retailers have absorbed billions in additional expenses, including new packaging taxes and rising electricity bills, leading to fewer jobs and higher consumer prices.
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The manifesto outlines several specific requests for government intervention. The BRC wants legislation to be used to crack down on retail crime and reduce the expense of hiring young staff. It also calls for a review of skills and employment rights to ensure standards improve without reducing hiring opportunities. Additionally, the group seeks to make electricity costs competitive for businesses and to strip away overlapping regulations that contribute to higher prices.
There is a clear tension between the desire to raise standards and the immediate pressure to maintain a low-cost labor base. The organization argues that lowering the cost of employing younger workers is essential for maintaining a flexible workforce. If the government pushes for higher minimum wages or stricter compliance costs without offsetting measures, the sector may struggle to justify hiring new staff, particularly in low-margin sectors.
Andy Burnham has positioned himself as a pro-business mayor, emphasizing the importance of collaboration to drive high street development and living standards. The BRC views retail as a critical partner in this vision, suggesting that specific policy changes could unlock investment in local communities. The manifesto offers a roadmap for the mayor to address the financial headwinds facing the industry, focusing on the practical needs of retailers to keep household essentials affordable for families.
