BRC: The King's Speech And Falling Retail Inflation

Responding to the latest CPI inflation figures, which show headline inflation remaining at 2.0% and food inflation falling 0.2 percentage points to 1.5%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

“While headline inflation remained at 2.0%, households will benefit from falling inflation rates in retail, with Food and Clothing & Footwear both dropping compared to last month. Falling energy prices and a stronger pound combined with fierce competition between retailers are helping to bring down prices for many goods, including essential items like pasta and margarine. A drop in prices could also be seen across Clothing and Footwear, with prices falling 1.2% on the previous month, and even more for children’s clothes.

"While we should celebrate the end of high inflation, which has dogged the UK for two years, many of the factors that caused it lurk in the background. Energy prices have fallen from peak, but the UK's reliance on imported energy remains a vulnerability. Similarly, the impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could increase commodity prices and translate into higher inflation in the future."

The King's Speech

Responding to the King’s Speech, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“The King’s speech lays out the foundations for a more modern, dynamic British economy, and retailers look forward to playing their part in bringing this to life.  The breadth of the retail industry means that many of these bills impact retailers and their customers, and we look forward to working closely with Government to maximise the industry’s contribution. We particularly welcome explicit bills to reform the Apprenticeship Levy and planning laws; tackle retail crime and antisocial behaviour; and accelerate the country’s clean energy transition. We acknowledge that this is just the first step in the legislative process and we look forward to working with the Government on all these bills.

On the Crime and Policing Bill:

“With over 1,300 incidents of violence and abuse a day against retail workers, there are millions of retail colleagues who will celebrate the creation of a new specific offence of assaulting a shopworker, announced as part of the Crime and Policing Bill. The Government must ensure this Bill protects all those in customer-facing roles, from delivery drivers to till staff, particularly as more risk violence or abuse as they enforce new age restrictions on tobacco products.

“We also welcome the Bill’s introduction of stronger measures to tackle shoplifting and anti-social behaviour. This is a timely intervention at a time when retail crime is costing retailers and their customers £3.3 billion a year.

On the Skills England Bill:

“The industry is united in welcoming the King’s announcement of a Bill to reform the Apprenticeship Levy. The rigidity of the current system prevents retailers from using funds to provide much-needed training for colleagues and support industry transformation. We hope that the flexibility offered by the new Growth and Skills Levy will allow for the use of funds for pre-employment courses, short courses encompassing functional and digital skills, and other advanced courses that will meet the needs of a modern workforce. We look forward to working closely with Skills England to ensure that the future of skills training meets the needs of employers and workers, today and in the future. 

On the Employment Rights Bill:

“The retail industry supports the goal of the Employment Rights Bill, including making work pay, enhancing employment rights, and banning exploitative practices. There are three million retail workers in the UK, and a further 2.7 million in the supply chain, and we look forward to engaging with the Government as it carries out its consultation on the Bill to ensure the plans are practical and workable for businesses and employees

On the Planning and Infrastructure Bill:

“We look forward to seeing more detail of the Government’s proposed Planning and Infrastructure Bill and its promise of much-needed planning reforms. The very nature of our high streets and retail centres are changing, yet current planning laws are failing to keep pace with this transformation, making them a barrier to, rather than a facilitator of, this change. Government must ensure that planning departments are better resourced, allowing them to make faster decisions and provide statutory certainty about application timelines, and creating streamlined processes for planning decisions regarding minor improvements.”

Source : BRC

Image : Dilok Klaisataporn / iStock / 1414982888

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