CHRISTMAS BONANZA... IF BREXIT IS AGREED
Shoppers want certainty before spending spree
CAMPAIGNERS urged MPs to back Theresa May’s Brexit deal last night to unleash a Christmas boom for High Street outlets.
Many businesses believe that Mrs May’s
withdrawal agreement would defeat “the enemy of uncertainty” which is preventing shoppers from splashing out on big ticket items in the run-up to Christmas.
MPs are expected to vote down Mrs May’s deal with the EU on December 11, with many fearing the UK will be shackled to the bloc for years to come.
But campaigners say the transition period set out in the agreement will allow businesses time to prepare and encourage consumers to splash the cash.
Alex Schlagman, of campaign group Save Our High Street, said: “Uncertainty is our enemy. While people don’t know what the future holds, there will always be people out there who will spend less because they don’t know what is gong to happen next.
“If the country comes together and feels like there’s a bit of decisiveness moving forward, we get behind this and feel bullish going forward, then there is a good chance backing a deal is going to have a positive effect. Anything that can give the market more certainty is likely to be positive.”
It comes amid warnings that uncertainty could hit the “golden quarter” for businesses because many shoppers are holding out for cheaper deals.
And there is also the added uncertainty amid fierce competition from online retailers.
Rain Newton-Smith, CBI chief economist, said: “While the current deal is not perfect, businesses need the assurance they won’t face a cliff-edge break with the EU in four months’ time in order to create new jobs and invest further in the UK.”
Andrew Opie, of the British Retail Consortium, said: “Continuing uncertainty is not good for retailers who need to plan ahead with suppliers to get quality, affordable products on the shelves we all expect. Securing a transition period through the withdrawal deal will give firms time to adapt to business outside the EU. That is imperative.
“The best thing for both consumers and retailers is a deal that secures that transition period.”
More than 100 Tory MPs say they are planning to vote against Mrs May’s agreement with the EU.
International Trade Secretary and leading Brexiteer Dr Liam Fox yesterday outlined how Mrs May’s deal and political declaration will provide tariff-free trade while allowing us to establish new deals with countries such as America.
He told port workers in Bristol: “The withdrawal agreement and the political declaration will not please everyone, and we have had some tough choices to make.
“Choices, which many in Parliament, on both sides of the House, are yet to face up to.
“But the deal we’ve reached will give us a firm and stable base on which to leave the EU and build this country’s global future, a future that still encompasses Europe but also the wide fast-growing markets beyond, with all the opportunity that entails. Now is the time to raise our sights, and acknowledge that there is a world beyond Europe, and a time beyond Brexit.
“We need to maximise our access to the EU market but without damaging our potential to benefit from emerging trade opportunities in other parts of the world.”
The rallying-call comes ahead of Small Business Saturday, a national UK-wide campaign today aimed at promoting Britain’s 5.6 million smaller businesses as retailers gear up for Christmas.
Joyce Gannon, owner of Cambridge-based retailer Ntsama Chilli Oils, said: “This occasion is an important chance to promote the benefits of choosing to shop local.
“Supporting smaller, home-grown food businesses encourages people to try different and authentic, tasty produce.”
Major shopping centres are also hoping for big business on pay-day weekend.
Chris Barnes, general manager of London’s Brent Cross shopping centre, said: “Black Friday very much marks the start of the Christmas shopping period now, so consumers start looking for presents earlier, and spread their shopping out through December.
“With all the promotions, we were really busy last week, and we expect that to continue this weekend, particularly as we’re staying open for longer.
But critics of Mrs May’s Brexit plan once again rounded on the deal, with former Ukip leader and MEP Nigel Farage tweeting: “We voted to not be dictated to by people like Donald Tusk.
Worst
“German press are now using the term ‘passive membership’ for the UK post-Brexit. This is the worst deal in history.”
And leading Brexiteer businessman Tim Martin, who founded the pub chain Wetherspoons, said on BBC Question Time on Thursday night: “If we have no deal, and I call it free trade, you will immediately be better off by £39billion.
“You can eliminate the invisible tariffs you pay on oranges, rice and 12,000 other products. We collect it here and send it to Europe.
“So you can reduce prices in the shops, plus our democracy.
“I think we will be better off on day one and it will continue to get better.”
THERE are many reasons why people in Britain want politicians to get on with it and agree a Brexit deal that allows us all to continue with our lives free from EU rule.
Britain’s retailers probably have as much cause as anybody to hope that MPs do the right thing and back Theresa May’s final proposal.
In recent years we have seen many names disappear or retreat from our high streets whether it is BHS, Maplin, Toys “R” Us, Poundworld or House of Fraser, Homebase and others. Fortunately, this year the industry has had extra boosts from the Royal weddings and the World Cup.
However, Christmas is a time when retailers depend on sales more than any other. That was underlined last year when Britain spent just short of £80billion during the Christmas period and this year retailers will be hoping for a new record. But, as the Global Data analysis shows, this is likely to happen only if people in the country feel certain about the future.
Political turbulence and fears about the future serve to fuel uncertainty, which in turn means people are less willing to spend money.
So for Britain’s shops to have a Christmas bonanza politicians need to give certainty over Brexit and back the Prime Minister’s deal in the meaningful vote on December 11. If they do then we should all have a very happy Christmas.