Helen Dickinson, the chief executive of the British Retail Consortium (BRC), has warned that government regulation 'weighs heavily' on retailers, hindering their ability to innovate, invest, and keep prices low for consumers. In an exclusive interview with City AM at the Retail Tech Show, Dickinson highlighted the growing burden of policy and tax on retail bosses, which she said is causing frustration across the industry.
Regulation Risks Getting in the Way
Dickinson, who has led the BRC for over a decade, expressed concern that regulation is 'risking getting in the way rather than supporting economic growth' and helping customers navigate the cost of living crisis. She noted that retail leaders are now spending more time grappling with government policy than ever before, a trend she described as problematic for the economy.
Supermarket Bosses Speak Out
The BRC chief pointed to comments from the boss of budget grocer Asda, who said the government has become 'more and more difficult' to deal with. 'For business leaders like that to be so outspoken about the impact of regulation says a lot,' Dickinson said, emphasizing that such pragmatic retailers typically focus on serving customers rather than engaging with policy.
Meeting with the Chancellor
Earlier this month, Dickinson and supermarket bosses from Tesco, Sainsbury's, and Morrisons met with Chancellor Rachel Reeves to discuss food inflation risks stemming from the Iran war. The group handed a 'wish list' to the Treasury, proposing to stall or unwind regulations on healthy foods and plastic packaging, and to offer energy cost relief for manufacturers.
While Dickinson acknowledged that the government is listening, she noted that 'there is more of a weight of regulation now than there was when I started.' The Treasury has yet to formally respond, causing 'a bit of frustration' among top grocers.
Food Inflation and Dynamic Pricing
Food inflation rose to 3.7% in February, with some industry figures warning of double-digit growth later this year due to energy and supply cost increases from the Iran war. Regarding fears of 'Oasis-style' surge pricing using digital shelf labels, Dickinson dismissed the idea, saying the competitive nature of the industry ensures shoppers won't be ripped off.
Employment Rights Concerns
Dickinson also called on the government to ensure its Employment Rights Act does not restrict flexible jobs for young workers. She warned that the guaranteed hours element could lead to employers slashing flexible roles, adding to a 'list of uncertainties' that makes businesses cautious about hiring.
A government spokesperson said they are overhauling the regulatory system to reduce burdens, identifying £1.5bn in gross administrative savings through an Action Plan launched last year.
