Comment: Making retail’s voice heard in the EU reform negotiations

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Our Prime Minister is on a crusade, seeking key agreements with the heads of government of other EU members in order to deliver reform.

His goal is to deliver reforms that will allow him to confidently encourage the electorate to vote ‘yes’ to the UK remaining a member of the European Union.

This quest to reform the EU is of the PM’s own making, resulting from his election commitment to offer the British people an in/out referendum. Now, unencumbered by coalition partners, the referendum has been set in train and looks likely in the final quarter of next year.

While the question of ‘in’ versus ‘out’ is often the most discussed, the real question at this particular point in time is ‘in’ versus ‘out’ of what? This is why the reform agenda is so important. What is achieved between now and the end of the year will set the scene for the nature of campaigns that follow.

Benefits for UK plc

Every trip to Brussels by a minister is trumpeted throughout the media as ‘make or break’ for the Government’s plans for reform. As the finer detail of these plans is yet to be clearly spelled out, the public debate has by and large concentrated on touchstone electoral issues such as migration within the EU, ever closer union and UK parliamentary sovereignty.

Though these issues are no doubt significant, in pure economic terms there are others that may be even more pressing. When considering reforming the European Union there are real gains to be made for UK plc. With targeted reforms, positive change could be affected.

Most retailers I talk to are pro-Europe. Some say the arguments are much more finely balanced but the consistent message is one that if we remain in the EU then things do need to change.

The BRC has identified three reform priorities which would benefit the UK retail industry and the customers it serves: the full development of the EU’s internal market – we don’t have one at the moment; more focus by the EU on liberalising international trade; and better, not more, legislation.

Why these priorities? Because we all need the single market we thought we were signing up to in 1970. Because UK consumers should be able to exercise full and meaningful choice over the goods they buy. Because UK retailers should be able to harness the opportunity of ecommerce and to be able to operate freely in other EU markets.

And because we need rules that are up to date, relevant and do the job. Progress on these will remove burdens and bureaucracy that have a direct impact on UK retailers’ bottom lines.

Relevant to all

No one should be under the illusion that none of this matters if you don’t trade in other member states. Retailing is, after all, sourcing quality products and getting them into the hands of consumers at the right prices.

The price retailers pay for stock, customs procedures, duties, the labelling and safety requirements are largely influenced by single-market and international trade policy. It’s crucial then for retail that the Government’s embryonic reform agenda is well informed by real economic considerations.

The BRC has agreed with our members key reform priorities that we believe will deliver real results for our industry. It’s our job now to convince politicians that these will have a wider benefit to the rest of the UK too.

And it’s only when this rational assessment has been made that we can answer the question of whether we are better off in or out.