Retail plea for European workers post Brexit

Britain must continue to welcome European workers if it is to make a success of Brexit, delegates were told at LDC's annual Retail and Leisure Summit.
Victoria Gate shopping centre in Leeds has been a success story for the cityVictoria Gate shopping centre in Leeds has been a success story for the city
Victoria Gate shopping centre in Leeds has been a success story for the city

Asked what the biggest threat Brexit poses, panellists were united in saying that Britain must have access to European workers if the retail, leisure and hospitality sectors are to thrive once Theresa May triggers Article 50 next week.John Upton, managing director at upmarket fast food chain Leon, said: “People who have been here for a decade are saying ‘Do I have to go home now?’“The one thing I would ask Theresa May is that amazing people should be able to come to Britain. We are a nation of a hotchpotch of cultures.”The rest of the panel were in firm agreement with him and called on the Government to come to a sensible deal with the EU.Jat Sahota, head of commercial at Trinity Leeds owner Land Securities, said that European workers are needed across a range of industries that support the retail and leisure sector.“The scaffolding sector is 90 per cent non UK nationals. We need to arrive at a sensible deal,” he said.Sophie Michael, head of retail at business advisor BDP, added: “We need to bring people from overseas.”Darren Williams, international retail director at tea specialist T2, which recently opened stores at Victoria Gate in Leeds and Meadowhall, said: “I hoped we wouldn’t leave the single market. I hope we find the right balance of what is right for Britain.“Europe won’t necessarily want to make this easy. They want to make it difficult for other countries to leave.”Oliver Chamberlain, a partner at law firm Hogan Lovells, said: “Brexit is bad generally for the economy, but it is bringing more investment in.“Nothing has happened yet. The uncertainty will start at the end of the month.”Mr Sahota agreed: “It’s a tough time to be a retailer. We are heading into uncertain times. We’ve got Brexit and all the uncertainty.”He added that consumers have started to delay purchasing big ticket items. The service sector, which includes retail and leisure, is seen as vital to the health of the economy. Strong consumer sentiment buoyed up the economy in the aftermath of the vote to leave the EU.Ms Michael said: “People are beginning to tighten their belts. March hasn’t started well.”Despite fears about the future, LDC said its research shows an improvement in vacancy rates.Matthew Hopkinson, director at LDC, said: “The number of empty shops is reducing. You can see that in places like Leeds which has seen big shopping centre development. There are fewer empty shops on the high street. There are positive signs of more shops opening in 2017.“However with the squeeze on consumer spending, we may be in a food and beverage bubble.”LDC said the run up to Brexit saw an increase in the number of shops closing and it reached a peak at the time of the referendum in mid 2016. However the final quarter of the year, which is the most important for retailers, saw more shops opening and the positive trend has continued into 2017. 2016 saw a net loss of 1,650 shops which equates to just under five a day.

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