The home delivery expert Parcelhero has called on the incoming Labour Government to ease the burden on the logistics sector; particularly reducing post-Brexit red tape and ensuring its planned taxation reforms don’t end up penalising retailers that have developed an integrated e-commerce and High Street approach to sales.
Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: “Many of Labour’s policies look promising, particularly in terms of reducing industry’s emissions, improving infrastructure and aiding SME retailers and businesses”.
“Labour’s pledge to establish Skills England, to bring together business, training providers and unions to ensure we have the highly trained workforce, also sounds encouraging.
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“However, there is one Labour promise we wouldn’t be sad to see it break. Labour has pledged will be no return to the single market or the customs union. Labour says it will work to improve the UK’s trade and investment relationship with the EU by tearing down unnecessary barriers to trade. However, without a significantly stronger trading arrangement with Europe, it’s hard to see how all the new Brexit red tape that is strangling Britain’s exporters to Europe can be eliminated.
“We strongly agree with Labour that the current business rates system disincentivises investment, creates uncertainty and places an undue burden on our High Streets. We are very pleased to see that, at least in England, labour will replace the business rate system. However, its current plan seeks to solve a problem that does not really exist and could end up penalising the best retailers and hindering those very deliveries Emily Maitlis was praising in her podcast”.
‘Labour says of its planned business rates reform: ‘This new system will level the playing field between the high street and online giants’. However, Labour is in danger of missing the point that many successful businesses, from Next and John Lewis to small local independent retailers, all realise that an integrated High Street and online policy is best.
‘The new government must recognise that successful companies will have physical stores and distribution warehouses to support their e-commerce activities. Most retailers will find Labour’s policy of cutting High Street rates by increasing warehouse rates is giving with one hand while taking with the other.
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‘It will be those retailers with strong in-store and online sales that will ultimately triumph in a post-Covid world. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales.
