UK retailers were facing a difficult environment with National Insurance and Minimum Wage rises, due to be compounded by changes to the business rates system that would introduce a higher multiplier for bricks and mortar stores valued at over £500,000. Ostensibly following through on a manifesto pledge to ‘level the playing field between the high street and the online giants’, the planned changes would see an adverse effect on the entire retail eco-system.
A number of the largest retailers (Tesco, Sainsburys, Marks and Spencer, Asda, Morrisons, Primark and Kingfisher) approached WPI Strategy to help create a unified platform to advocate on this particular policy issue. We were tasked with creating media salience, increasing engagement with MPs, and creating a campaign that would bring this issue to the attention of Treasury Ministers who are focused on tax rises given the fiscal climate.
Our Approach
Build a hearts and minds campaign around the retail sector about how the proposed changes would put this foundational UK industry at risk. The approach looked to highlight the government’s failure to follow through on its manifesto pledge, instead jeopardising the entire bricks and mortar retail eco-system.
Highlight how changes would not only impact the growth of the sector and impinge upon the government’s growth ambitions. Our political approach was also centred on the importance of the high street in the voter's psyche.
Utilising our in-house economics team, we produced analysis that showcased the overexposure of MPs to retail employment and how the proposed changes could increase the risk of MPs losing their seats.
Achieving significant national media coverage and making use of targeted social media advertising around SW1, this pressure was utilised to encourage MPs to write to the Treasury and demand they look again at the proposals.
Building on a cohort of supportive MPs, our campaign was bolstered by achieving the support of USDAW, the shopworkers union, for a joint letter to the Treasury warning of how the proposed business rate changes would impact upon retail jobs.
Outcomes
Raising the salience: Our approach took what was a niche, complex tax issue and turned it into an emotive, comprehensible narrative that portrayed the significance of retail and the threat that the proposed changes presented.
Building advocates from target audience: The Treasury is never short of lobbyists calling for changes to the tax system, and that is why building a collection of Labour voices was key to the success of our approach. From MPs writing to treasury ministers as well as obtaining the support of USDAW, our approach was designed to apply the most effective pressure on policy change.
Ministerial Meeting Achieved: Our campaign led to a direct meeting with the Exchequer Secretary, highlighting concerns about proposed business rates changes. The Minister agreed further review was needed. We continue discussions with the Treasury ahead of the Autumn Budget, presenting an opportunity for policy change, supported by RJA CEOs if retail is exempt from the higher multiplier.