When Rachel Reeves was a Beckenham schoolgirl, she won a British Under-14 chess championship. Here are five of the opening moves our new government has planned for the Consumer Sector – her “Queen’s gambits”:
A Business Rates revolution
Some good news for the High Street, at last?
Labour say they will ‘replace business rates with a new system of business property taxation which rebalances the burden and levels the playing field between our high streets and online giants.’
International lawyers, Osborne Clarke, comment ‘Labour, as part of its five-point "High Street Plan", is proposing radical reform, promising a complete replacement of the current system designed to…better incentivise investment, tackle empty properties and support entrepreneurship.’
Less than zero on ‘Zero Hours’
As The Guardian points out, ‘Labour has repeatedly promised to ban zero-hours contracts, under which an employer is not obliged to provide any minimum number of working hours.’
But the actual legislation, as announced in the recent King’s Speech, lets some workers opt out of the ban, allowing retailers and manufacturers a little labour market flexibility.
King Cash?
In 2014, cash accounted for 46% of all UK transactions, in 2024 this stands at 11%.
‘To safeguard the right to use cash and foster financial inclusion,’ Investment Monitor says, ‘Labour has drawn up plans for banking hubs and potentially will look at regulations which might guarantee cash payment options which could have a myriad of implications across many sectors.’
Under Reeves, cash may be about to make the unlikeliest of come backs.
Junk food finally junked
Osborne Clarke again, ‘The Labour manifesto says that a Labour government would ban the advertising of "junk food" to children.’
The King’s Speech confirmed this. With charities, like the British Heart Foundation, welcoming ‘plans to implement the delayed ban on junk food advertising before the 9pm watershed and online.’
Higher hiring costs
As Investment Monitor points out, ‘Labour’s plans for the labour market include strengthening trade unions, pushing for bigger minimum wage increases… and eliminating qualifying time for sick pay, parental leave and flexible working.’
Overall, this legislation is likely to increase the cost of hiring and developing staff for both manufacturers and retailers.
So, there you go. Reeves has made her opening moves. Now, it’s the turn of the Consumer Sector’s hard-pressed senior management.