Government urged not to take retail for granted

A new report from Intu and Revo is calling on the Government to do more to support and promote the retail industry, as its findings show that international retailers find many of the features of the UK retail market attractive, but the UK’s business rates regime is putting off potential new entrants.

The research conducted on behalf of Revo and Intu by Conlumino among 130 international retailers, found the UK is seen as attractive across 36 key factors including solid economic growth rate, a sensible approach to labour relations, low corporate tax rate and sound digital infrastructure.

However, almost three-quarters of the retailers surveyed said they would consider other countries in preference to the UK for expanding their business; with the stand-out issue being the high level of UK property taxes, especially business rates.

With the industry generating 326 billion pounds in sales each year and directly employing around 3 million people, the voice of retail property Revo and intu, owner of many of the UK’s largest and most popular retail destinations, is calling on the government to review the entire structure of business rates which they state is currently a “disincentive for inward investment and makes the UK uncompetitive”.

Intu chief executive, David Fischel, said: “The good news is that overseas retailers are interested in the UK because it is a large market, has sensible employment regulations, low corporation tax and a sound digital infrastructure. However, almost three-quarters of the retailers surveyed said they would consider other countries in preference to the UK for expanding their business.”

UK business rates putting new retailer entrants

Revo chief executive, Ed Cooke, added: “Retail is a Great British success story, admired around the world for its creativity and innovation. The sector is supported by a dynamic and evolving retail property industry, which is adapting in response to retailer needs, shaped by changing consumer shopping habits.

“Although successful our research shows how, at a time of great political and economic uncertainly, we must take things to another level. Specifically, by looking again at property taxation, to create a more internationally competitive tax environment, and also by more actively prompting our market abroad.”

Other recommendations within the report include promoting the UK to international retailers, addressing issues relating to planning and providing more help to navigate the complex legislative and wider regulatory landscape.

The report interviewed 130 international retailers with a collective turnover of 1.5 trillion pounds, consisting of those already in the UK, those considering the UK for expansion and those where the UK is not on their expansion plans. They were asked about their international expansion plans and to rate the UK on 36 factors, identifying barriers to investing in the UK and ranking the UK against other retail markets.

Images: courtesy of Intu