Analysis: A break down of MPs' retail recommendations to Government

The Portas Review and the BIS retail strategy

• The Government should state how much of the £2.3m funding allocated to the Portas Pilots has been spent. The BIS report states that there is no available data on the allocation of the funds and no organisation seems to be auditing it.
• The Committee recommends that the Government should include the retail sector in its Industrial Strategy Programme at the earliest opportunity to help the sector grow. It currently isn’t included which business minister Michael Fallon said was due to the sector’s “success” and therefore does not require an enormous amount of government funding for high-cost research and development.

The changing nature of retail

• The committee recommends that the Government helps shops stay on the high street. It said it recognises that due to the rise of online shopping high streets should have a leisure and retail offer now. It added that it could support retailers by reviewing the burden of business rates, which are based on an “outmoded” retail environment.
• It believes the Government could learn lessons from the US tax structure as an alternative to the current system. The Government should also encourage a more flexible approach from landlords and discouraging upward-only rent reviews, it added.
• The Government should call on Local Enterprise Partnerships (LEP) to develop a strategy for retail, in order to demonstrate their commitment to the Retail Sector. LEPs have been the focus to support the local retail sector but are lacking in resources. They should think of appointing a retail representative to the board.

Skills

• The committee recommends BIS commits to continued financial support for the Union Learning Fund which which enables unions and employers to work together, providing employee training and support. It added that the retail sector should be more ambitious by encouraging more staff to be trained at Apprenticeship Level 3 and above.
• It added that the changing nature of how people shop needs to be refelected in the way staff are trained.

Business rates

• The committee believes that the business rates system needs a fundamental reform.
• The committee urges the Government to reform the valuation system.
• The 2% cap on business rates rises announced in December and to be implemented in April should last longer than a year.
• It also recommends a six months’ business rates amnesty on businesses occupying empty properties.

Cross-departmental issues

• BIS should take the lead in the strategic overview of the retail sector, co-ordinating work with the Department for Communities and Local Government for a more practical and direct approach to the issues facing the retail sector.