January 2011 Archives

So just when I thought the last person in the office had recovered from their winter colds, the whole economy sneezed. Today's announcement that the economy contracted last month adds fuel to our argument, expressed in this blog more than once, that the government needs to do more to set the right regulatory and fiscal framework for retailers to thrive.

This includes:

• Revisit the thorny and universally hated empty property tax
• Consider ways to alleviate the rates burden on retailers
• Support development through the introduction of mechanisms that will deliver new retail development and with it construction and other related jobs, along with growth opportunities for those retailers who are in a position to expand.
  

Taking forward some, or all, of these measures would provide a much-needed boost for the retail sector which is so crucial to the performance of the economy as a whole.

Government insists the weather is to blame for the latest poor figures. Undoubtedly it played a part, but that mustn't be seen as the scapegoat for poor economic performance. If it is, there will be further stormy times ahead.

So the wrapping paper has been thrown away (or perhaps in this age of austerity ironed and put in a drawer for next year - the ultimate in recycling), the dog has finished the remains of the oversized turkey, most of us are complaining about eating too much in the full knowledge we'll do it again in 12 months, and we have all committed to new year's resolutions which we know we are more than likely to break before the spring (or, if you're like me, you already have!). So pretty much the same start to this year as any other then? Well not exactly.
 
Day four of 2011 brought the unwelcome arrival of a VAT increase, now at its highest level in history, and day six brought more gloomy weather and profit warnings from some of our best known high street retailers. Later in the year we will be subject to (unless government can be persuaded otherwise) an extension of the empty property rate regime to cover all but the very smallest retail units and a further business rate hike of 4.6%.

Coupled with commodity price inflation impacting retail prices, there is a feeling that the overall sector growth this year will be unremarkable, indeed it could go backwards.