The grocery sector anticipates key policy announcements in the new Budget, impacting business operations nationwide.
- Business leaders emphasise the need for reforms in business rates, impacting high streets and online taxation.
- Employment rights and the economic agenda are being monitored closely by major retailers.
- Farming stakeholders are advocating for stronger support and fair trading practices.
- Changes in National Insurance and wine duty rates are major concerns for various industry leaders.
In anticipation of the new Budget, there is heightened interest from the grocery sector concerning potential reforms. Business leaders from top supermarkets and cooperatives have voiced their concerns about business rates, which they see as disproportionately high. Stuart Machin, CEO of a leading retailer, expressed apprehension that ambitious reforms might not materialise as promised. Meanwhile, Co-op’s Shirine Khoury-Haq highlighted a 20% increase in their business rates, calling for a system overhaul to relieve the financial pressure on high street shops and urge fairness in online retail taxation.
Employment rights are another focal point, with retailers preparing for new legislation under the Labour government’s agenda. John Lewis Partnership’s CEO, Nish Kankiwala, conveyed a supportive stance towards economic growth intentions but remains cautious as further details emerge. Encouragingly, Co-op’s CEO acknowledges the statutory formalisation of certain worker rights they have long practiced.
Concerns within the farming community have also emerged, with accusations of ‘farmwashing’—supermarkets allegedly misleading consumers about supporting local farms. Guy Singh-Watson, of Riverford Organic, advocates for stronger powers for the Groceries Code Adjudicator to even the playing field. The National Farmers Union’s president, Tom Bradshaw, criticises the underutilised agricultural budget and urges financial support for farmers.
National Insurance changes pose another area of unease. A rise in these taxes, deemed as ‘tax on workers’ by M&S’s Stuart Machin, threatens both large employers and smaller suppliers. The impacts could hinder job creation, contrasting with the government’s purported economic growth goals.
Interest rates and wine duty are crucial topics affecting household spending and the beverage industry, respectively. Sainsbury’s Simon Roberts seeks clarity in policies affecting household budgets. Wine industry representatives, including Majestic Wine’s CEO, warn that increased duties could discourage exports to the UK, affecting small merchants and altering consumer choices substantially.
The grocery sector keenly awaits the Budget announcement, hopeful for balanced reforms that meet industry needs and support economic growth.
