New UK PM urged to squash no-deal Brexit rhetoric to reassure retail market

By

Barbara Santamaria

Published
Jul 25, 2019

British businesses and trade bodies have called on new UK PM Boris Johnson to reassure retailers and make tackling business rates a priority to unlock confidence.

“The most pressing issue for retailers remains clarification on Brexit, both in terms of timing and the nature of the withdrawal. But numerous retailers – particularly the supermarkets – have expressed concerns over an October deadline, anxious about the potential increased pressure to supply chains and storage space coinciding with Halloween and preparation for the busy Christmas period,” commented Thomas Brereton, retail analyst for GlobalData.

Boris Johnson was elected leader of the Conservative Party on Tuesday and took office as Britain’s new prime minister on Wednesday. His appointment has seen the probability of a no-deal Brexit rise to 25-30%, according to the data and analytics company.

“Retailers will also be watching to see if Mr. Johnson can stimulate consumer confidence. GlobalData’s July Consumer Sentiment Tracker shows both future and present sentiment declining from the previous month, and despite being marginally higher than the lows witnessed at the start of 2019, this will likely worsen as we approach October if the Government fails to provide clarification over Brexit,” Thomas Brereton continued.

Beyond Brexit, retail companies have voiced their concerns about the current business rates system, asking Johnson to take drastic action and consider the negative impact the 2017 Revaluation process has had on UK companies.

Paul Faulkner, CEO of Greater Birmingham Chambers of Commerce said: “Coupled with uncertainty created by Brexit, firms up and down the country are facing severe price pressures right now and it was no surprise to see a sharp increase in the number of companies concerned about rising business rates in our latest Quarterly Business Report.

“While Mr Johnson is understandably fixated on securing Britain’s withdrawal from the European Union, it is essential that he also concentrates on fixing the fundamentals of the domestic economy in a bid to strengthen its competitiveness.

“Introducing a freeze on rates, simplifying and making this outmoded system fairer would be a good start and to echo the sentiment projected by the incoming PM in his victory speech, the hard work needs to start now.”