We need active government to revive our retail sector

Without immediate stimulus, we risk inflicting permanent damage on our retailers.

These are tough times for one of the UK’s most successful and innovative sectors: retail. Whatever else we were up to during the Olympics, we weren’t shopping – figures from the ONS this week show that retail sales actually fell in August compared to July, with the hoped-for Olympic retail bounce sadly not materialising. The underlying picture is of an industry which, despite being worth more to our economy than the whole of the manufacturing sector, and employing one in ten workers, has still not recovered its 2007 position relative to other sectors. 

As I said when I addressed more than a thousand industry leaders at the British Retail Consortium’s Annual Dinner this week, this is not for want of trying. Retailers come from all over the world to walk through British stores to gain inspiration and to poach ideas. This leadership is not just in conventional retail. As more and more commerce moves online, British retailers are adapting fastest, with a greater share of goods bought online in the UK than in any other major market.

The biggest problem for the retail sector is that it is the consumer-facing end of an economy hit by the recession made in Downing Street. Householders facing a squeeze on their incomes today and lacking confidence about what the future might hold are, understandably, reluctant to spend. The longer this economic malaise continues, the more our national debt will rise and the more permanent damage it will do to our economy. In practical terms, this means the drying up of investment in future capacity, the scarring effects on young people whose first experience of the labour market is unemployment, as well as the decline in the skills of those who have lost their jobs.

We must bring the public finances into balance as soon as we can. But a stalled economy today means that borrowing is rising, and the ambition of fiscal balance is further away. In the meantime, we are all worse off today and the future success of our economy is held back. 

That is why Labour is calling for an immediate stimulus through our five-point plan for jobs and growth. These are common sense measures, each one backed by business, based on the right diagnosis. A temporary VAT cut, like that introduced by Alistair Darling in 2008, would make a real difference, getting the economy moving, orders on books and cash registers ringing once again.

In difficult times, our retailers are working hard to respond to the changing demands of consumers, who are increasingly shopping through multiple channels, at all times of day and night, and are becoming more focused on the shopping ‘experience’: not just on the value of a brand, but also on the values it represents. These trends offer big opportunities for companies willing to rise to this challenge – and increasingly it is retailers leading the way.

So, we see retailers embracing their responsibilities to the environment, realising the opportunities of this approach and valuing their customers as partners in this task, alongside taking an active interest in improving their local communities by considering their impact on the areas in which they operate and looking for ways to source more locally. This is better for our society and better for the environment. But it is good business too. 

These are exactly the kinds of models, practices and behaviours that Ed Miliband is talking about in his call for a more responsible capitalism: more firms focused on building value for the long term, which value and nurture their employees – such as the fantastic joint working with the trade union Usdaw in the retail sector – and seeing economic strength and social responsibility as two sides of the same coin.

This trend reflects businesses being moved to act responsibly in their own interest, delivering value for their firms and society in general. But government has responsibilities too, in supporting firms in making these choices. That is why the successful future for the British economy must be built on a true partnership between productive business and active government, responding to each sector’s specific needs and circumstances.

With the right action from government, working in partnership with business, I have no doubt we can get Britain back on the right path – growing again, competing again, pulling together, not pulling apart.

Despite the Olympics, retail sales fell in August compared to July. Photograph: Getty Images.

Chuka Umunna is Labour MP for Streatham and Chair of the All Party Parliamentary Group on Social Integration.

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The decline of the north's sporting powerhouse

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Now, things are different.

On a drive between Sheffield and Barnsley, I spotted a striking painting of the Kes poster. Billy Casper’s two-fingered salute covered the wall of a once-popular pub that is now boarded up.

It is almost 50 years since the late Barry Hines wrote A Kestrel for a Knave, the novel that inspired Ken Loach’s 1969 film, and it seems that the defiant, us-against-the-world, stick-it-to-the-man Yorkshireness he commemorated still resonates here. Almost two-thirds of the people of south Yorkshire voted to leave the EU, flicking two fingers up at what they saw as a London-based establishment, detached from life beyond the capital.

But whatever happened to Billy the unlikely lad, and the myriad other northern characters who were once the stars of stage and screen? Like the pitheads that dominated Casper’s tightly knit neighbourhood, they have disappeared from the landscape. The rot set in during the 1980s, when industries were destroyed and communities collapsed, a point eloquently made in Melvyn Bragg’s excellent radio series The Matter of the North.

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Yet today, we rarely get to hear the voices of Barnsley, Sheffield, Doncaster and Rotherham. And the Yorkshire sporting powerhouse is no more – at least, not as we once knew it.

This should be a matter of national concern. The White Rose county is, after all, the home of the world’s oldest registered football club – Sheffield FC, formed in 1857 – and the first English team to win three successive League titles, Huddersfield Town, in the mid-1920s. Hull City are now Yorkshire’s lone representative in the Premier League.

Howard Wilkinson, the manager of Leeds United when they were crowned champions in 1992, the season before the Premier League was founded, lamented the passing of a less money-obsessed era. “My dad worked at Orgreave,” he said, “the scene of Mrs Thatcher’s greatest hour, bless her. You paid for putting an axe through what is a very strong culture of community and joint responsibility.”

The best-known scene in Loach’s film shows a football match in which Mr Sugden, the PE teacher, played by Brian Glover, comically assumes the role of Bobby Charlton. It was played out on the muddy school fields of Barnsley’s run-down Athersley estate. On a visit to his alma mater a few years ago, David Bradley, who played the scrawny 15-year-old Billy, showed me the goalposts that he had swung from as a reluctant goalkeeper. “You can still see the dint in the crossbar,” he said. When I spoke to him recently, Bradley enthused about his lifelong support for Barnsley FC. “But I’ve not been to the ground over the last season and a half,” he said. “I can’t afford it.”

Bradley is not alone. Many long-standing fans have been priced out. Barnsley is only a Championship side, but for their home encounter with Newcastle last October, their fans had to pay £30 for a ticket.

The English game is rooted in the northern, working-class communities that have borne the brunt of austerity over the past six years. The top leagues – like the EU – are perceived to be out of touch and skewed in favour of the moneyed elites.

Bradley, an ardent Remainer, despaired after the Brexit vote. “They did not know what they were doing. But I can understand why. There’s still a lot of neglect, a lot of deprivation in parts of Barnsley. They feel left behind because they have been left behind.”

It is true that there has been a feel-good factor in Yorkshire following the Rio Olympics; if the county were a country, it would have finished 17th in the international medals table. Yet while millions have been invested in “podium-level athletes”, in the team games that are most relevant to the lives of most Yorkshire folk – football, cricket and rugby league – there is a clear division between sport’s elites and its grass roots. While lucrative TV deals have enriched ruling bodies and top clubs, there has been a large decrease in the number of adults playing any sport in the four years since London staged the Games.

According to figures from Sport England, there are now 67,000 fewer people in Yorkshire involved in sport than there were in 2012. In Doncaster, to take a typical post-industrial White Rose town, there has been a 13 per cent drop in participation – compared with a 0.4 per cent decline nationally.

Attendances at rugby league, the region’s “national sport”, are falling. But cricket, in theory, is thriving, with Yorkshire winning the County Championship in 2014 and 2015. Yet Joe Root, the batsman and poster boy for this renaissance, plays far more games for his country than for his county and was rested from Yorkshire’s 2016 title decider against Middlesex.

“Root’s almost not a Yorkshire player nowadays,” said Stuart Rayner, whose book The War of the White Roses chronicles the club’s fortunes between 1968 and 1986. As a fan back then, I frequently watched Geoffrey Boycott and other local stars at Headingley. My favourite was the England bowler Chris Old, a gritty, defiant, unsung anti-hero in the Billy Casper mould.

When Old made his debut, 13 of the 17-strong Yorkshire squad were registered as working-class professionals. Half a century later, three of the five Yorkshiremen selec­ted for the last Ashes series – Root, Jonny Bairstow and Gary Ballance – were privately educated. “The game of cricket now is played in public schools,” Old told me. “Top players are getting huge amounts of money, but the grass-roots game doesn’t seem to have benefited in any way.”

“In ten years’ time you won’t get a Joe Root,” Rayner said. “If you haven’t seen these top Yorkshire cricketers playing in your backyard and you haven’t got Sky, it will be difficult to get the whole cricket bug. So where is the next generation of Roots going to come from?” Or the next generation of Jessica Ennis-Hills? Three years ago, the Sheffield stadium where she trained and first discovered athletics was closed after cuts to local services.

This article first appeared in the 19 January 2017 issue of the New Statesman, The Trump era