Retail Sector: Unemployment

Debate between Lord Callanan and Lord Rose of Monewden

Wednesday 27th January 2021 Lords Chamber

[Lord Rose of Monewden]

To ask Her Majesty’s Government what assessment they have made of the impact on unemployment of any decision by the administrators of (1) Debenhams, and (2) Arcadia, not to seek deals which (a) retain staff, and (b) keep stores open; and what steps they are taking to support jobs in the retail sector.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The Government recognise the significant impact that redundancies will have on employees and their families. We have put together a far-reaching package of support for business and the economy, including the Coronavirus Job Retention Scheme, which has supported 81,900 businesses in the wholesale and retail sector, with claims worth over £7.96 billion.

[Lord Rose of Monewden (Con) [V]]

My Lords, the Fashion Retail Academy works with employers to provide young people skills and practical experience to meet the evolving needs of the industry. In normal circumstances, 96% of its students—more than 1,000 a year—go into permanent jobs. Does the Minister agree that the FRA and other national academies play a vital role in supporting youth employment and that the Government should support their sustainability and expansion as part of a strategy to support young people in retail at this critical time?

[Lord Callanan (Con)]

The noble Lord makes a good point. I know that he has extensive experience in this sector. I am sure that we will want to do all we can to support the kinds of initiatives that he refers to.

Covid-19: Financial Support for High Street Retailers

Debate between Lord Callanan and Lord Rose of Monewden

Tuesday 27th October 2020 Lords Chamber

[Lord Rose of Monewden]

To ask Her Majesty’s Government what additional financial support they plan to provide to high street retailers affected by the restrictions in place to address the COVID-19 pandemic.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we have abolished business rates for high street retailers for 12 months as part of the Government’s support during the pandemic and have extended the moratorium on commercial landlords’ right to forfeiture for non-payment of rent. The Chancellor has announced the next phase in the Government’s plan to protect jobs and support businesses, including a new job support scheme and greater flexibility to help pay back loans.

[Lord Rose of Monewden (Con) [V]]

I thank the Minister for his reply and, of course, I welcome the additional support the Chancellor announced last week and the business rates holiday, which has been a lifeline for so many businesses. However, that holiday is due to come to an end in April and without it, I fear more retailers will go under, resulting in yet more store closures and job losses. We have already lost 14,000 stores this year and 125,000 retail staff have lost their jobs. Will the Government extend the business rates holiday for a further year and think again about their recent decision to end the VAT retail export scheme, which CEBR estimates will result in at least another 27,000 people losing their jobs in the retail sector?

[Lord Callanan (Con)]

I know that my noble friend has great expertise in this sector. As set out in the call for evidence for the fundamental review of business rates, of which he will be aware, the Government anticipate setting out our preliminary conclusions from the review in the most pressing areas, including reliefs, in the autumn.