7. Statement by the Minister for Social Partnership: The retail sector — Contributing to Wales's economic mission

Part of the debate – in the Senedd at 5:05 pm on 11 June 2024.

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Photo of Sarah Murphy Sarah Murphy Labour 5:05, 11 June 2024

So, what have we done? The last year has seen a particular focus on the people actions in the plan, which aligns with the economic mission's key national priorities about skills, young people and the everyday economy. I believe the adoption of fair work principles will provide a significant pathway to addressing some of the issues faced by the sector. A better deal for workers is one of the keys to unlocking the door to a stronger, better, fairer and more sustainable future for the retail sector. This is why the theme of 'people' is a prominent part of the retail action plan.

In the last six months, we have seen average wages across the retail sector improve compared with Wales averages, which is good to hear, although we do recognise there is still a great deal of work to do to ensure those who work in the retail sector have access to fair, safe and secure work. Welsh Government is working with Cynnal Cymru, the living wage foundation accreditation partner in Wales, to better understand the barriers facing businesses in terms of real living wage adoption and accreditation. We will use the networks convened around the retail forum to share what we have learned. The retail forum has been active in discussing and interrogating the employability, skills and careers offering to the sector in Wales, and we will be publishing new web content to help stakeholders understand the skills landscape across Wales. This will enable members of the forum to engage with employers on the recruitment, retention and skills development of workers in the sector. A retail job should provide equitable access to learning and development to those who choose to pursue the opportunities and a career in retail.   

Retail crime and any abuse of retail workers is abhorrent, unacceptable and should not be tolerated. In the Union of Shop, Distributive and Allied Workers 2023 'Freedom from Fear' survey of UK shop workers, seven out of 10 respondents reported verbal abuse, and nearly 50 per cent reported that they had been threatened with violence in work. No-one should fear going to work or face physical or verbal abuse for simply doing their job. Although criminal justice is a reserved issue and the responsibility of the UK Government, I am committed to working with policing partners and using the levers at our collective disposal to prevent retail crime and ensure staff feel safer in their roles. That includes working with police and crime commissioners and local leaders in the retail sector and encouraging the Home Office to drive forward improvements. We had welcomed the UK Government's move to make a specific retail abuse offence through the Criminal Justice Bill. Although the Bill was discarded following the announcement of the UK general election, we will push for UK legislation in this space to proceed at pace once the election is concluded. 

Crucially, we are investing in retail. In 2024-25, we invested an additional £78 million to provide a fifth successive year of support for retail, leisure and hospitality businesses with their non-domestic rates bills. This builds on the almost £1 billion of support provided through our retail, leisure and hospitality rates relief schemes since 2020-21. Since the plan was launched in 2023, we have been able to roll out an extra £20 million through the futureproofing fund, which will help up to 2,500 businesses in the retail, leisure and hospitality sectors to invest in renewable energy technology, improvements to their premises and upgrades to systems or machinery to reduce energy use in 2024-25. This has been deliberately targeted at hospitality, leisure and retail as it confirms our commitment in the resilience element of the retail action plan. I expect to share news on how retail businesses have benefited from this in the coming year. We anticipate funding to help further advance the retail vision and deliver on the resilience chapters in the plan.

The retail sector is vital to the changing face of our town centres. The town centre position statement, published last year, sets out the challenges faced by town centres and how we will help to reinvigorate them. It connects strongly to our vision for the retail sector, and the actions in the position statement will enhance those in the retail action plan. We need to ensure both support and complement one another. I will be working closely with my Cabinet colleagues to ensure a joined-up approach is taken. I want to see more positive news about this sector, building on great examples that I have witnessed recently on a visit to Blaenau Ffestiniog, and what is happening in Treorchy, bringing together all the different agencies and interested parties so we can replicate this good work across Wales. 

Finally, what next? I look forward to continuing the good relationship with the retail forum and working together in social partnership to take forward and deliver more actions in the plan, specifically shining a light on the actions around place and resilience. I'm committed to working across the Cabinet to collaborate where there is opportunity to improve the retail environment for workers and customers alike, using our influence wherever we can to promote trade union access as the foundation to more collective voice and representation across the sector, and encouraging greater security on pay and working hours by promoting guaranteed hours and the real living wage.

I recognise that this sector is continually dealing with change, whether online, rising costs or shortage of labour, and I acknowledge that there is more to manage in the years ahead. I am appreciative of this sector for its continued engagement with Government, and I will continue to provide opportunities for open dialogue and close working. I am deeply committed to ensure the workers at the heart of the sector and the physical infrastructure of retail remain a key feature in our communities. We have more work to do, but I am confident that, by being at the table, listening and acting together, we can develop a retail sector in Wales that is vibrant, a good place to work and continues to contribute to the Welsh economy now and in the future. Diolch.