In a bid to resuscitate Britain's beleaguered high streets and tackle the mounting youth unemployment crisis, Andy Burnham, the Prime Minister-in-waiting, is being urged by major retailers to cut taxes and invest in young people. The British Retail Consortium (BRC), which represents some of the UK's largest retailers, has made its pitch directly to Mr Burnham, arguing that his proposed policies must be tailored to meet the needs of businesses if they are to succeed in boosting local communities and revitalising high streets nationwide.
The BRC is demanding a reversal of recent hikes in the minimum wage and National Insurance Contributions (NICs), which it claims have put unbearable strain on retailers' operations. Additionally, the trade body is pushing for substantial reductions in business rates, asserting that current levels discourage investment, hinder growth, and ultimately lead to higher prices for consumers. According to BRC figures, retailers have absorbed an additional £6.5 billion in employment costs since 2024, largely due to escalating business rates and new packaging taxes.
At the heart of the retailers' appeal is their deepening concern about youth unemployment. The BRC argues that rising employment costs have exacerbated this challenge and is calling for these increases to be reversed. Furthermore, the organisation proposes establishing a dedicated task force, in collaboration with retailers, to develop and expand pathways for young people to enter employment. This comes on the back of a review earlier this year by former health secretary Alan Milburn, which highlighted factors contributing to nearly one million young people not being in education, employment, or training.
Helen Dickinson, Chief Executive of the BRC, underlined that Mr Burnham's commitment to collaboration with businesses is crucial for driving growth, supporting high streets, and improving living standards. She stressed that the retail sector is a vital partner in achieving these goals, capable of driving investment, creating jobs across every postcode, and ensuring the affordability of household essentials, provided the right policies are implemented. Mr Burnham himself has outlined his vision for a high street 'renaissance' during a significant policy speech in Manchester last month, underscoring the importance of local businesses.
The call for business rates reform is not exclusive to the BRC. Other trade bodies are also advocating for a reduction in business rates for traditional 'bricks and mortar' companies, proposing a 37% cut funded by a 2% levy on online sales. Mr Burnham has already signalled his commitment to expanding business rates relief for smaller companies, potentially funded by an increase in tax on out-of-town warehouses, indicating a potential openness to addressing the concerns raised by the retail sector.