In April, the Labour Party published their five-point plan to revive Britain’s high streets. This contained their proposed steps to rejuvenate the shopping landscape and bring economic growth back to towns across the country.
Using current developments in the retail sector, we’ll evaluate each point of Labour’s high street plan and provide recruitment insights on how this could influence head office hiring.
The current condition of retail on the high street
In their plan’s opening statement, Labour declared: “Rishi Sunak’s recession has hammered small businesses and consumers alike.”
The Conservative Party came to power in 2010. Throughout their 14-year reign, approximately 420,000 traditional retail jobs were lost (2010 to 2023). In 2023 alone, more than 10,000 retail stores closed their doors. Labour attributed this erosion to the following key factors:
- The soaring cost of living
- ‘Eye-watering’ mortgage and rent payments
- Record levels of shoplifting – rising more than 30% in a single year
- Persistently high levels of antisocial behaviour
What are the aims of Labour’s high street retail plan?
Labour’s high street retail plan builds upon the government’s previous ‘Levelling Up’ white paper, published in 2022. A key element of this was strengthening ‘Pride in Place’; “an emotion people feel towards the physical community that they identify with (…) It is underpinned by their sense of safety and security (…) and their satisfaction with local high streets (…).”
Following their 2024 electoral win, much of the ‘Pride in Place’ ethos can be found in Labour’s proposed actions for the high street, in tandem with strengthening Britain’s economy. We’ll analyse their five steps next.
- 1. Tackle anti-social behaviour and shoplifting
In the past year, a staggering 70% of UK retail employees faced verbal abuse and 46% received threats, with some suffering from PTSD. Iceland’s Executive Chairman, Richard Walker, recently urged the next government to prioritise tackling daily incidents of shoplifting and violence in stores.
Currently, charges for assaulting shop workers vary by severity. The Labour Party proposes a single charge with a maximum sentence of 6 months imprisonment or an unlimited fine. They also plan to scrap the £200 rule that prevents the investigation of shoplifting incidents below this value.
- 2. Roll out banking hubs
Over the past decade, over 6,000 UK bank branches have closed. Parliament recently highlighted the particular negative effect of this on customers with disabilities, older individuals and residents in rural areas. Labour’s plan emphasised; “Thriving high streets need banking services for local businesses and customers.” They intend to address this issue by introducing banking hubs to ensure face-to-face services in every community, better supporting at-risk consumers, local businesses and high streets.
- 3. Replace business rates
Labour pledged to “replace business rates with a new system of business property taxation” to even the playing field between high street retailers and online giants. As explained by Helen Dickinson, Chief Executive of the British Retail Consortium, current business rates present a major obstacle for retailers: “With retail paying 22% of the total rates bill while accounting for 5% of the economy, it is the number one thing in the way of increased retail investment which could unlock growth across the economy.“
- 4. Stamp out late payments
Labour’s plan continues; “small and independent retailers shouldn’t be forced to wait months to be paid for work by big clients. Labour would introduce tough new laws to stamp out late payments and make sure more money gets to high street firms.”
In 2023, research data from Natwest revealed that 27% of small and medium-sized businesses in Britain were owed between £5,000 to £20,000 in unpaid invoices. With SMEs accounting for 61% of UK employment, it’s easy to see how this issue jeopardises the retail sector, work stability and the wider economy.
- 5. Revamp empty shops, pubs and community spaces
In 2022, a Sheffield Hallam study pinpointed profit extraction as a key contributor to high rents becoming unaffordable for small businesses and start-ups. Many properties were left vacant (‘land banked’) to retain their value, causing prolonged closures and a decline in independent businesses.
Labour’s final point concludes that they will “give communities a strong new ‘right to buy’ beloved community assets, to revamp high streets and end the blight of empty premises.“ Empowering communities with the “right to buy” could help rejuvenate these areas. Similar initiatives, such as the 2021 “Meanwhile in Oxfordshire…” program, have successfully partnered with councils to let vacant units to local, independent, and community-driven organisations on short-term leases.
What does Labour’s high street retail plan mean for retailers and workers?
Labour’s plan for the high street bodes well for the retail sector. Alongside their proposed updates to worker’s rights, moves to repress anti-social behaviour and shoplifting may have a significant impact on lowering the sector’s critical rate of employee turnover.
Employers will benefit greatly from the promotion of timely payments and reduced business rates. The revamping of empty spaces also promises to be invaluable for the revival of small and local retailers. Several retail head office skills are likely to be in demand as a result of the high street plan, including:
Finance
- Tracking of revenue and investments
- Updating companies’ payment processes to reflect Labour’s reduced tax rate
- Processing a higher volume of payments received within shorter time windows
HR
- Updating policies on shoplifting and processes for reporting incidents
- In the event of abuse against workers, timely reporting and follow-up support/counselling
Interim professionals in finance and HR can assist retailers during this transitional period. From balancing workloads during busy periods, to updating policies and processes, they can implement change in a streamlined manner. To learn more about temporary hires, read our short guide: The top 5 benefits of hiring a temporary worker.
Work with Distinct
As a leading East Midlands and London recruitment agency, we strive to stay informed on the latest retail news and what it means for the world of work. If you’re searching for your next retail head office job or looking to hire talented head office professionals, contact us today.
