Ahead of the Welsh Government’s budget announcement today 10/12/2024, retailers in Wales are calling for a pro-business approach to address the financial challenges currently impacting the sector. Industry leaders are urging Ministers to focus on supporting economic growth, avoiding unnecessary burdens on businesses, and fostering an environment conducive to retail success.
Trudy Davies, owner of the independent Woosnam & Davies Newsagents, expressed concern over the difficult economic landscape for small businesses. Rising operational costs and the strain on consumer incomes are putting significant pressure on retailers, she said. In light of these pressures, Davies has called for increased relief measures to support businesses, emphasizing that a stronger recognition of retailers’ contributions would be a key step towards long-term economic recovery.
The Welsh Retail Consortium (WRC), a leading trade body representing retailers in Wales, has submitted a detailed set of budget recommendations to Welsh Ministers and Members of the Senedd (MSPs). These proposals focus on reducing government-imposed costs, implementing competitive taxes and regulations, and fulfilling promises made in the Retail Action Plan. In particular, the WRC pointed out that a recent decision in the UK Budget to raise employer national insurance contributions has significantly affected Welsh retailers, with an additional £120 million annually added to their costs.
Sara Jones, Head of the Welsh Retail Consortium, noted that the retail industry in Wales is grappling with considerable challenges, including stagnant retail sales growth, falling foot traffic, and rising operating costs. The additional tax burden introduced by the UK government, combined with existing economic hurdles, has compounded these difficulties. As a result, Welsh retailers are facing a particularly tough year ahead, and many are now focused on the upcoming Welsh draft budget, which will be presented to the Senedd on Tuesday.
The WRC has warned that these financial pressures could negatively impact the retail sector’s ability to make long-term investments in both infrastructure and workforce. According to Jones, the Welsh Government now has an opportunity to restore business confidence and drive investment. A key element of this, she suggests, is the urgent need to overhaul the current business rates system, which has been described as a barrier to investment and job creation within local communities.
To address these issues, the Welsh Retail Consortium is calling for the introduction of a retail-specific discount—a 20% reduction in retail property rates bills. Such a measure, they argue, could help stimulate investment in high streets and local businesses, create new jobs, and boost consumer confidence in the retail sector.
The Welsh Government’s budget, which is expected to be presented in the coming days, will be a critical moment for the future of the retail industry in Wales. Retailers are hoping that the Welsh Finance Minister will respond to these calls by taking bold steps to mitigate the challenges faced by businesses and lay the groundwork for a more prosperous economic future.
As the retail sector navigates a difficult landscape, stakeholders are keenly awaiting the details of the budget to see if their concerns are addressed and whether meaningful support is offered to one of the country’s most vital industries.
