01 January 0001
A new business tsar has been appointed - David Buttres
Bira was part of a retail round table discussion that included Mr Buttress. There have been widespread reports that one of the ideas put forward by Mr Buttress is for retailers to reduce prices as part of a number of actions to increase consumer spending and confidence. In return, Mr Buttress is developing, with the government, a promotional campaign to promote the steps taken by businesses to support households in the UK.
A lot more detail is required but Bira has already expressed concerns about this idea. Andrew Goodacre, Bira CEO has written to Mr Buttress and Paul Scully (the Business Minister) to express concerns about such a plan.
Andrew says: “Walk down any high street and you will see promotional activities from retailers to increase footfall and consumer spending, so it is not immediately clear how this new government initiative will make a difference.
Furthermore, supply chain inflation (and other costs such as energy) have been ahead of consumer inflation for some time, and as a result, independent retailers have been operating on reduced margins by suppressing the retail prices.
To deal with the current pressures on business and improve consumer confidence we believe that more direct action would be appropriate and easier to implement – reducing the level of VAT charged on goods and services would be a start. This was done for hospitality in the middle of the pandemic and could be used again as an effective means of easing pressures on the economy and the high street”
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