The upcoming 2024 general election in the UK sees the Conservative, Labour, and Liberal Democrat parties presenting their distinct retail policies.
- The Liberal Democrats propose abolishing business rates in favour of a ‘commercial landowner levy.’
- Conservative plans focus on providing a £4.3bn support package for small businesses to alleviate high street burdens.
- Labour suggests overhauling business rates to ensure fairness between high street and online enterprises, though details remain undisclosed.
- Each party has differing approaches to international trade, apprenticeship levies, and retail crime.
In the lead-up to the 2024 general election, the UK’s major political parties have outlined their retail policies. The Liberal Democrats are offering a significant shift by suggesting the abolition of business rates, replacing them with a ‘commercial landowner levy’. This new levy would be calculated based on the land value occupied by a tenant, transferring the payment responsibility to landlords, thereby removing a financial burden from retailers.
Conversely, the Conservative Party has pledged a £4.3 billion business rates support package over the next five years to aid small businesses. Their plan includes an increase in the multiplier applied to distribution warehouses, aiming to ease financial pressures on high street businesses. This move is designed to balance the competitive edge between physical retailers and online distribution centres.
Labour’s approach involves replacing the existing business rates in England, promoting a system that ensures the revenue raised is done ‘fairly’. Their policy intends to level the playing field for high street and online businesses, although the specifics of this new system have not yet been detailed.
Regarding international trade, the Liberal Democrats aim to mend the UK’s ‘broken relationship’ with Europe, with aspirations to join the EU’s single market. They also seek to create agreements that minimise trade barriers. In contrast, the Conservatives focus on establishing free trade agreements with countries like India and the Gulf Cooperation Council, as well as pursuing deals with the US, Israel, and Switzerland. Labour, meanwhile, is committed to eliminating ‘unnecessary barriers to trade’ without rejoining the EU’s single market or customs union, aiming instead for a strategic partnership with India.
On the subject of apprenticeships, parties diverge sharply. The Liberal Democrats want to replace the existing ‘apprenticeship levy’ with a broader skills and training levy, ensuring apprentices receive at least the National Minimum Wage. The Conservatives plan to create 100,000 apprenticeships annually by reallocating funds from low-quality university courses. Labour proposes replacing the ‘broken’ apprenticeship levy with a flexible growth and skills levy while guaranteeing opportunities for all 18 to 21-year-olds, either through training, apprenticeships, or work assistance.
Retail crime is another area of focus, with the Conservatives advocating for tougher sentences for assaults on retail workers, though specifics are lacking. Labour’s plan involves defining an assault on shop workers as a criminal offence and addressing shoplifting loopholes found in existing legislation.
Notably, none of the parties mentioned the VAT Retail Export Scheme in their manifestos, despite calls from retail leaders to reinstate tax-free shopping for overseas visitors. The absence of such a policy is seen as a disadvantage for UK retailers in the European market.
The differing retail policies of the three parties underscore the varying priorities and strategies each intends to implement.
