Measures to stimulate economic growth which help retailers to keep down shop prices whilst contributing to public policy goals should be at the heart of the upcoming Welsh Government Budget, according to a leading industry group.
In its Welsh Budget submission – entitled Together for Retail – sent to the Finance Secretary, Mark Drakeford MS, the Welsh Retail Consortium (WRC) says retailers are working hard to keep prices down for households, whilst decarbonising their operations and supporting their supply chain. These efforts come at a testing time for shopkeepers, it says, with retail sales remaining at best flat, weak annual shopper footfall, and stores striving to trade profitably in the face of ongoing regulatory pressures.
The 12-page submission contains 18 recommendations from the leading sectoral trade body and comes ahead of the expected unveiling later this year of the devolved administration’s tax and spending plans for 2025-26.
The WRC wants Wales to be the best place in the UK to grow a retail business. They argue that enhanced levels of consumer spending will be central to Wales’ economic recovery, and that stimulating greater levels of private sector investment will be crucial to lifting Wales’s rate of economic growth and living standards, generating the tax revenues to support public services and alleviate poverty, whilst supporting a just transition to net zero.
Specifically, the WRC is suggesting the Welsh Government should:
- Provide an allocated budget to the delivery of the Retail Action Plan, which is due for renewal in May 2025.
- Introduce a 20% retail-specific discount to the Welsh multiplier for retail properties of all sizes and in all locations.
- Freeze the Non-Domestic Rates Multiplier for 2025-26.
- Prevent any cuts to funding to the apprenticeships budget and engage with the UK Government on reform of the Apprenticeship Levy and the Skills England Bill.
- Ensure that there are no rises to the Welsh Rate of Income Tax.
- Provide a costed roadmap of regulation due to be introduced by the Welsh Government.
Sara Jones, Head of the Welsh Retail Consortium, said:
“There is no question that the economic climate remains challenging for the retail industry given a backdrop of little to no growth in retail sales, and greater outlays to run their business. With retailers making decisions about how and where to invest in the coming years, their attention will be on the forthcoming Welsh Budget and the Finance Secretary’s spending plans. Facing an onslaught of regulatory costs which are being driven by the wider Government agenda, retailers will be seeking measures to stimulate economic growth, and support them in their efforts to keep down shop prices for consumers.
“The Welsh Budget is a key opportunity to inject some confidence back into the economy, boosting spending and helping to foster much needed investment by businesses. Our headline ask is to acknowledge the broken business rates system which is currently holding back investment in jobs and communities across the retail industry. By introducing a Retail specific discount – a 20% adjustment to retail property rates bills – the Finance Secretary could help drive investment in local high streets and communities, creating jobs and boosting consumer confidence.
