Shops are a vital part of the economy, employing around three million workers and communities need a successful retail industry. As a society, we have to decide if we want a thriving retail sector at the heart of our towns and cities. If we do, and I think most people would agree, then we need the Government to act, to immediately reform business and property taxes to ensure that town centre retail can survive and thrive. We urgently need a more level playing field between online and bricks-and-mortar retailers, something Usdaw and many major retailers, including Tesco, Morrisons and Asda have called on the Chancellor to do in the Budget on 3 March.

At the core of this would be a 1% online sales levy that could raise around £1.5 billion and fund a 20% cut in the current outdated and imbalanced commercial property tax. If anyone ever doubted the impact of online retail on our high street, you only have to see what has happened to Arcadia and Debenhams in just the last fortnight. Major brands divvied up between two online only retailers, Boohoo and Asos. That will result in the closure of their stores, which have been the cornerstones of most town centres for decades.

We must also look beyond the impact on business and consider the heavy toll the pandemic is having on retail workers, particularly women workers. In Arcadia and Debenhams around 80% of the workers impacted are women. They valued these local employment opportunities, often in easily accessible town centres, with sociable hours, customer interaction and flexibility to help meet childcare commitments. Many will find it very difficult to transition to employment in out-of-town online fulfilment centres, that are difficult to get to, with 24/7 shift operations.

We need a recovery plan and an industrial strategy that recognises the contribution of the people who work in the retail sector. There are serious questions and concerns about what retail jobs will look like in the future. For too long the retail sector has become a byword for low pay and insecure hours. This isn’t sustainable and won’t attract or retain talent in the long run.

If we want retail to prosper, we need to make sure that retail jobs are good jobs. We need decent pay. I’m pleased that Usdaw and Morrisons have recently negotiated an increase in the basic pay rate to £10 per hour. We want to see a real living wage being offered right across retail. Workers need guarantees over the working hours they need to support themselves and their families. We also need a commitment to staff training and development, especially in light of automation and new technology, which is changing the retail landscape.

It’s clear that significant challenges lie ahead for the retail sector. Which is why Usdaw is calling for unions, government and retailers to come together to develop a plan for the sector; an industrial strategy for retail that makes practical changes and provides economic reforms, offers decent pay and secure work and delivers for both retailers and retail workers. Not just in terms of the current crisis, but also to help futureproof the sector against new and evolving challenges going forward.

Usdaw’s Save our Shops campaign calls for an immediate recovery plan that includes:

Business Rates: The business rates holiday has helped, but it needs to be extended beyond March to avoid a cliff-edge. The voluntary repayment of almost £2 billion of business rates relief by several supermarket chains should be used to support retail and hospitality most impacted by lockdown measures and provide direct help to those workers who have lost their jobs and are struggling financially.
 
Rent Relief: The moratorium on shop evictions for non-payment of rent is welcome, but unpaid rents are still accruing and will become liable at some point. Property landlords need to reduce shop rents, but many commercial property renting businesses are also facing tough times and uncertain futures. There needs to be a three-way approach with businesses paying reduced rents, landlords accepting lower rents and Government assisting both retail businesses and landlords.
 
In addition to the above immediate measures, Usdaw is urging the Government to work with all key stakeholders to develop a recovery plan for the sector built on:

• Fundamental reform of business rates. Retailers need clear and decisive action from Government to reform/reduce this outdated and imbalanced commercial property tax. An online sales levy set at 1% of online sales would raise around £1.5 billion. This could fund a cut in retail business rates of around 20%.
• An immediate and comprehensive review of rental values and lease arrangements. Interim support should include government assistance to help pay shop rents. In the long-term we need a re-balancing of power between landlords and tenants and a wider debate on how rents and leases are set and negotiated.
• Reform of UK tax law to ensure that companies pay their fair share of tax through tackling tax avoidance and the use of offshore havens, with the aim of creating a level playing field between online and ‘bricks and mortar’ retailers. For example, over the last 20 years Amazon has paid a total of £61.7 million in corporation tax, while Marks and Spencer paid £3.3 billion.
• Additional funding for local authorities so they can invest in their local economy, transport networks and high streets. We cannot revive our high streets if core services continue to be undermined.
• Investment in skills for retail workers, including through union learning and high-quality apprenticeships. This should include an in-depth assessment of emerging trends and potential skills shortages/gaps within the sector.
• A new deal for retail, distribution and home delivery workers based around a real living wage and guaranteed hours. This is not just about basic pay but improvements to Statutory Sick Pay (SSP) and respect for shopworkers through 'Protection of Workers' legislation. 

Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with over 400,000 members. Membership has increased by more than one-third over the last couple of decades. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades.
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion