The Retail Sector

1. Questions to the Minister for Economy – in the Senedd on 16 November 2022.

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Photo of Peter Fox Peter Fox Conservative

(Translated)

8. What assessment has the Welsh Government made of the impact of its shared strategic vision for the retail sector? OQ58701

Photo of Vaughan Gething Vaughan Gething Labour 2:20, 16 November 2022

Our shared vision for retail was launched in June, and it marked the start of a broader and deeper conversation with the sector. The Wales retail forum, made up of partners from business and the trade union side—and I'm sure that the Member and others have had the opportunity to see one of those partners, USDAW, in the launch of their Freedom from Fear campaign—have been working together on a delivery plan of priority actions for the sector. The plan is nearing its final stages and will, of course, be published once completed.

Photo of Peter Fox Peter Fox Conservative

Thank you very much for that, Minister. The importance of the Welsh retail sector cannot be stressed enough. We know that over 110,000 people are directly employed by the industry. Recently, I met with chief execs of major businesses in the retail sector, all of whom expressed their serious concerns with vital detail missing from the Welsh Government's shared strategic vision.

Retention and recruitment are huge problems facing the industry, as they told me, yet the Government's strategy does not outline concrete steps to overcome that obstacle. The chief execs also maintain that freezing business rates next April, a step that the Welsh Government has not yet committed to, would provide a welcome boost, as would an adjustment to the multiplier. Unless these things happen, they warn that Wales will become even less competitive.

Businesses told me that they are desperately in need of stability and certainty. Minister, do you recognise their concerns, and will you do all that you can to look at business rates, including the multiplier, which currently make doing business here the most expensive in the UK? These things will ultimately determine the future of these businesses. 

Photo of Vaughan Gething Vaughan Gething Labour 2:21, 16 November 2022

Thank you for the question. I certainly do recognise the significant challenges that exist within the sector. I was recently with the Deputy Minister for Social Partnership at the consultation event around the detailed plan. Again, the leading trade union, USDAW, together with other colleagues and the Welsh Retail Consortium, which you will be familiar with—your former deputy leader, Sara Jones—are actually representing and bringing together the sector.

They are raising a range of issues. They are certainly looking for stability and certainty from the Government, and they are getting it, because we have worked alongside them to develop the vision, and are working alongside them with the delivery of a plan. We'll then publish it, and there may well be things that we will commit to doing as a result of that. That's the work that we are doing at present.

I recognise the challenge about retaining and recruiting people. We have actually been really positive about wanting and encouraging people to see a career in the sector. And actually, the vision and the delivery plan should help to build on that. This isn't just seasonal employment. There is a real career to be had within these sectors as well. So, the consultation on the delivery plan isn't finished. We certainly will take account of the views that we have had recently.

The point around rates was raised there as well, but I would gently remind the Member that, given that tomorrow has yet to happen, the financial envelope that we have to operate in is not yet clear to us. Our commitment on business rates to the end of this financial year is there, but we really do need to understand what tomorrow is going to bring; whether it increases our ability to do more, or whether it actually makes the challenge even harder, as he will know in very practical terms from his time in leading a local authority and having to make these very difficult or practical choices.