CBI conference: Tesco boss Dave Lewis urges Tories to consult more with retail industry – taking side-swipe at policies ranging from apprenticeship levy to Living Wage
"Drastic Dave" Lewis has called on the government to pay more attention to the retail industry when adopting new measures, taking a swipe at key Tory policies ranging from the apprenticeship levy to the Living Wage.
Speaking at today's CBI conference, the Tesco boss suggested that government did not allow retailers enough of a say in key policy areas that affect the industry – particularly when new levies or taxes are imposed.
He urged politicians to allow the industry to work together on issues such as "the consequences of higher rates, the Living Wage and initiatives such as the apprenticeship levy".
"The British Retail Consortium is already attempting to do this, but it takes two to tango," he added.
Business rates and the Living Wage – two issues that have been deeply unpopular with high street retailers, who fear the extra costs will eat into company profits – came in for particular focus, with Lewis dubbing the current business rates system "unsustainable".
The Living Wage, meanwhile, drew "arbitrary lines" and made salaries and benefits too simplistic.
"We need a fuller debate aimed at doing the right thing for the people in our industry without imposing more cost without providing individual benefit or business return," he said. "As an industry there is a worry that the unintended consequences of the living wage have not been fully thought through."
Lewis also called on ministers to work with the industry on employment, skills and training challenges, saying retailers could "do the heavy lifting" but urging for a balance to be struck "between allowing investment for growth and collecting taxes through mechanisms like the apprenticeship levy, which wipes out the equivalent of our whole training budget".
And he urged for a better working relationship on areas such as health and food education, helping to "nudge" people towards making healthier choices about the food they buy – no doubt in reference to the much-discussed sugar tax.
Lewis said there were "significant challenges" faced by the shift towards online retailing, but said they could be overcome to create "real opportunities, if we can meet in the middle ground."