Theresa May’s unexpectedly swift appointment as prime minister is to be welcomed. She must now set out a clear plan - and in weeks not months.
Her priority must be to bring back confidence to the UK economy. That means reducing uncertainty.
First, we all need to understand her vision for the UK’s future relationship with the EU. There are many possible scenarios, but the quicker the government sets out its preferred option, the earlier business can plan. Second, the roadmap to Brexit and beyond needs to be published early and updated often. The government won’t have all the answers now, but a clear plan on how and when it will address the big questions will help. There must also be a deep, open and continuing dialogue with business. Third, if ever there was a time to ‘scrape the barnacles off the boat’ it is now. Ditch the ‘nice to do’s’ and ensure a single-minded focus on growth through a competitive tax regime, removing red tape, encouraging investment, and investing in skills and training.
As to our own situation, the business community must be crystal clear on what we need from the rebooted government to re-establish the conditions for growth. And despite concerns about consumer confidence, like politicians, we need to focus as much on maximising the opportunity as minimising the risk. Shoppers will still need to shop, and will still seek out everyday luxuries as hard-earned reward. That’s not to say there won’t be change. In such an already competitive, dynamic and pressurised market, we will continue to see simplification in categories, unprecedented focus on value and increasingly agile shoppers moving spend to find value. Yes, a challenging place for producers, suppliers and retailers to be. But I still see innovation playing its part, and I am heartened that in my world, for example, shoppers are seeing beer and cider aisles bristling with new products, tastes, pack formats and drink provenances. Diversity and value are the best they’ve ever been.
And like politicians, we too must hold our nerve. If you don’t stretch the boundaries, you won’t win in innovation. If you start cutting it early you will lose out.
David Forde, managing director, Heineken UK, and guest editor of The Grocer
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