‘After Amazon lovefest, can the government now show all of retail more affection?’

Not just one, not even two, but three of the government’s biggest beasts were falling over themselves this week to welcome investment in the UK by online retail giant Amazon.

Prime minister Keir Starmer, chancellor Rachel Reeves and business and trade secretary Jonathan Reynolds all provided gushing statements for an Amazon release revealing it would pump £40bn into the country over the next three years – a sum estimated to add £38bn to the GDP.

The politician’s praise probably said as much if not more about their desperation to show their economic strategy is working as they take a battering over controversial changes to benefits and a rocky start to their relationship with business, particularly retailers who have been saddled with billions in extra costs.

“The world is changing, but this government is working hand in hand with businesses to navigate that change to create jobs, wealth and opportunity in every corner of the country,” reckoned Reeves. Hmmm.

Government endorsement is no doubt helpful for Amazon, a business that still raises uncomfortable questions – whether about taxation or just a few days ago, for instance, from the Groceries Code Adjudicator about the time taken to pay suppliers.

In fact, some of the investment had been previously announced – Amazon was open about that – and given that it has invested £75bn over the last 10 years, the latest round is certainly a step up but not a step change.

That said, Amazon’s continued investment is welcome. You still hear some people grumble about whether it is a ‘proper retailer’ but that’s just sour grapes about a business model that has consistently put customers first and whose innovations – whether speedy delivery or retail media operations – have been followed by the whole industry.

Retail has been described as a foundation stone of the ‘everywhere economy’, in recognition of the vital part it plays in local communities and their fortunes

In this country, Amazon employs 75,000 people – that’s more than Marks & Spencer – and is among the biggest 10 employers. While the etailer may be most associated with warehouse roles, and there’s nothing wrong with that, it creates jobs that are likely to be in demand at Amazon and elsewhere in future, from AI to logistics.

Retail has been described as a foundation stone of the ‘everywhere economy’, in recognition of the vital part it plays in local communities and their fortunes. Amazon is an example of that.

The retailer has, for example, chosen Darlington in the North East of England to pilot Prime Air drone deliveries. Obviously there are some questions about the venture, but the plans have proven popular among many in a region that has never fully recovered from the decline of traditional heavy industry and would benefit from the development of new skills and technology.

Amazon’s investment – and actually everything piled in that might conceivably be described by that word, such as pay – may have been accompanied by an overdose of political hype and bring it some brownie points, but it’s still significant at a time when so many retailers are cutting costs, by force if not choice, and investment cash is in shorter supply.

All the same, plenty of retailers are investing in the future all over the country, including new technology.

Perhaps enthusiastic prime ministerial and Treasury comment should be sought for their press releases too, and they can replicate the Amazon-government lovefest.

Recognition of the retail industry’s value might mean that the question of why it’s being put at risk by sudden and significant cost increases would land home in Westminster.