The UK has a new Labour government after 14 years, which has left many business leaders feeling positive. However, there are challenges that the fashion and retail sectors are facing that they hope the government will address.
Brexit has made trading with the EU difficult and has reduced the pool of skilled staff available to companies. The end of the VAT Retail Export Scheme has also hurt luxury retail, as tourists can no longer shop VAT-free in the UK. Additionally, business rates continue to be a headache for retailers of all sizes.
Other issues include planning problems, retail crime, lack of government support for creatives, and uncertainty over sustainability legislation. The two biggest concerns for the fashion and retail sectors are tax-free shopping and business rates.
Labour has mentioned reforming business rates and creating a level playing field for physical retailers. They also plan to ban certain zero hours contracts and introduce employment protection measures. However, there is uncertainty around their approach to addressing the skills gap and tax-free shopping.
Industry insiders are eager to see how the new government will address these issues, especially within the next year. There are calls for the government to reform business rates and reinstate the VAT Retail Export Scheme to attract more tourists and boost the economy.
The British Fashion Council has emphasized the need for support in various areas, including trade and export investment, fashion education, and sustainable business practices. The industry believes it is underestimated and underfunded by the government compared to other sectors.
Business leaders are calling for a collaborative approach from the government and are eager to work together to shape policies that will drive growth and restore the UK’s competitive edge. The logistics sector also needs help from the government, particularly in reducing post-Brexit red tape.
Brexit remains a significant challenge for the new government, and it is unlikely to be revisited despite the impact it is having on businesses. The government’s approach to trade and investment with the EU will be crucial in addressing the red tape that is affecting exporters.
Overall, there is optimism within the fashion and retail sectors about the new government’s promises to support businesses and workers. However, there are concerns about how effectively they will address key issues such as tax-free shopping, business rates, and Brexit. The industry is ready to work with the government to find solutions and drive growth in the UK economy.