Help retailers help everyone else

The Chancellor announces the details of his comprehensive spending review on October 20, no doubt giving notice to thousands of our customers that they will soon be out of a job. I’m not sure what colour they’ll attribute to the day - will it be Black Wednesday or (Getting Out Of The) Red Wednesday? For political expediency and with so many ‘sacred cows’ already promised some degree of protection, the day could end up being fudge coloured. Or Wholemeal Honey if you work for Brewers.

Whatever your shade of politics, everyone agrees that we have to cut public spending, especially among the numerous tax-payer-funded quangos. Earmarked for the chop is the Independent Review Panel for the Classification of Borderline Products. Given that many of our products are often described as ‘borderline’, usually prefixed by ‘at best’ in letters to our customer service team from ‘disgusted of Tunbridge Wells’, I more than anyone welcome its dissolution.

What I’m hoping will accompany the announcement on Wholemeal Honey Wednesday (see, it sounds better already, doesn’t it) is some innovative tax concessions and incentives that will better enable the private sector and in particular the retail industry to help make up the shortfall in the economy that will result from these cuts.

We need the Government to do something a little more inventive than the rallying call we got last week from the deputy governor of the Bank of England, a certain Mr Bean (you couldn’t make this up) to spend, spend, spend rather than save. Nice try, but if you want me to spend my money I need Manolo Blahnik whispering “new shoes, lovely new shoes” in my ear not Mr Bean telling me it’s my duty. The Government needs to leave it to the professionals but we could use help.

So how about they extend tax concessions on empty retail units. A new store can take more than a year to find it’s feet in a new town - from getting the product mix right to understanding the most effective local media to promote itself - so why not offer a lengthy rate-free period on these stores? Or to encourage local businesses, if you’re already a domestic ratepayer in a city, you could be excused paying commercial rates if you take on an empty store.

When the public sector cuts come, the natural reaction will be for us retailers to do likewise. New store opening and refurbishment plans will be put on hold. New product development will also be curtailed. But what if new product launches were excused VAT in their first year? What if significant tax concessions were given to new store openings or new store designs?

Essentially it’s quantitative easing but one that rewards innovation and investment in our industry and something that could over the next three to five years propel the UK retail industry to the forefront of global retailing. A rosy future waits. Or Fairy Dust if you’re more cynical.

Jacqueline Gold is chief executive of Ann Summers