Retail bodies urge next Prime Minister to prioritise affordability, investment and jobs

Sir Keir Starmer's resignation as Prime Minister and Labour leader on Monday puts retail policy back into immediate play for an industry employing nearly three million workers and facing what the British Retail Consortium (BRC) calls a "cost of doing business crisis."

Andy Burnham, the former Greater Manchester mayor who has confirmed he will run to replace Starmer, is now the overwhelming favourite to become the next Prime Minister.

If Burnham is elected, he will be facing a retail industry that is dealing with multiple ongoing issues, from a "cost of doing business crisis" to rising youth unemployment and rising retail crime.

“Retail is one of the country’s largest employers, contributes billions to our economy and plays a vital role on high streets and in communities across the UK," said Chris Brook-Carter, Chief Executive of the Retail Trust.

"The health of the industry, and the happiness and wellbeing of its nearly three million workers, are fundamental not only to the sector’s future, but also to the country’s economic strength and collective sense of wellbeing," he added.

For the BRC, the priorities for the next Prime Ministers are clear: "keeping prices affordable and supporting investment and job creation."

“Retailers face a cost of doing business crisis, with billions added to bills in recent years," it added.

The BRC previously warned that the Government's proposed guaranteed-hours rules under the Employment Rights Act could reduce retail flexibility and cut entry-level jobs ahead of the measures taking effect in January 2027.

It added that these pressure risk pushing up prices while reducing local investment, adding that the priority must be to back businesses and supply chains to keep costs down for customers, while supporting the high streets.

“Retail is one of the UK’s biggest entry points into work, particularly for young people. It’s possible to strengthen workers’ rights without damaging job creation - but making hiring more complex and expensive will ultimately cost jobs and opportunities,” the BRC commented.

According to new figures, the number of young people neither working nor learning has risen above one million for the first time since 2013.

Chris Brook-Carter, Chief Executive of the Retail Trust, added that the political uncertainty must not be allowed to create even more uncertainty for retail staff and their employers.

"Strong leadership around issues such as business rates, employment costs, retail crime and mental health remains as important to the future of the industry and the country as ever," Brook-Carter said.

He added that new measures to tackle retail crime will be an important step forward in protecting the safety and wellbeing of retail staff, while also helping to rebuild the reputation of the industry as a great place to build or begin a career.

He also highlighted the importance of backing the Crime & Policing Act, which sees more more support for workers facing unacceptable incidents.

Retailers are seeking clarity from the next Prime Minister, but how quickly that will arrive depends on the pace of the Labour leadership contest.

For now, "any political uncertainty must not be allowed to create even more uncertainty for retail staff and their employers," highlighted Brook-Carter.