The BRC joined a panel alongside the FSB and Bill Grimsey, author of the 2013 High Street Review, to discuss the retail industry’s reaction to the Spring Budget with the All-Party Parliamentary Group (APPG) on the Future of Retail.

We set out that the Budget contained some measures of relevance to retailers, including capital allowances full expensing (which replaces the super-deduction) and the extension of the first year allowance to 2026, both of which aim to stimulate investment in qualifying plant and machinery.

We also noted the introduction of returnerships – which aim to encourage over-50s who have left the labour market back into the workforce through combining existing skills initiatives, with extra funding for skills bootcamps and Sector-Based Work Academy Programmes – as a sign that Government is aware it needs to do more to tackle labour market challenges, but this represented a missed opportunity to deliver reform to the Apprenticeship Levy which could boost retailer spend on skills and training.

The Government’s free childcare plan was also discussed: we made it clear that this must be underpinned by funding for childcare providers to ensure that supply meets demand.

Turning to what was missing from the Spring Budget (and what should feature in the Autumn), we highlighted that fundamental reform of business rates is yet to be delivered and the Government must commit to a reduction in the burden (by cutting the multiplier back to 34.8p) in order to stimulate investment and growth and support the vitality of communities across the country, a point which was strongly agreed with by other panelists.

We also set out the need for reform to the Apprenticeship Levy to help retailers create thousands of new positions across the country and make better use of their funds to support their training, upskilling and development needs. And turning away from purely fiscal matters, we highlighted the burden placed on retail from upcoming regulations; the need for better coordination across Government on policy and regulation which impacts the industry; and the inflationary impacts of EPR and DRS, and the need to ensure both policies deliver tangible benefits for consumers and the environment.

If you’d like further information, please contact Tom McCarthy (tom.mccarthy@brc.org.uk).