A more hamstrung administration must still act on reducing costs, tackling crime and fair business, says James Lowman


The new government will have pressing economic priorities but, given a hung parliament, no one party will be able to implement everything set out in its pre-election policy platform.

At the time of writing this, we don't know which elements will survive the horse trading and consensus building and we don't know what the personality, mood and psychology of the new government will be.

I don't believe government in this scenario is unworkable; there are many examples where countries continue to function with a coalition or minority leadership. In Scotland this is all there has ever been and their experience gives clues about how this system might work in Westminster.

Working at Holyrood with our colleagues in the Scottish Grocers' Federation, we have experienced phases of harmony and action leading to big decisions such as abolishing tuition fees and providing free prescriptions. At other times we've seen acrimony and deadlock, where competing ministers have tended to ramp up their rhetoric and ambition.

A good example is the current alcohol debate where messages have been hammered home about the urgent need for sweeping new restrictions on alcohol retailing and promotions. But, when it comes to delivery on the rhetoric, they struggle to build agreement and the legislative progress has been slow.

Overall the new arrangements will mean government will be doing less, fewer laws will be put before Parliament and there will be fewer big new initiatives. Yet there are pressing priorities that need to be addressed. At our recent summit I summarised these into three themes: reduce costs, tackle crime and fair business.

Reducing costs means taking a responsible approach to the national minimum wage and restraint in local and national business taxes. It also means a rethink of social policy gimmicks such as the tobacco display ban that places cost and operational burden for no clear benefit.

Tackling crime means providing reassurance that theft from a shop is taken seriously by police and the courts, ensuring there are actions in place to deter anyone from the first-time thief to the prolific offender. Shops must be able to rely on police to respond to any threat of violence, and anyone caught committing attacks has to face the same criminal sanctions as those assaulting police or nurses.

Fair business means ensuring retailers of all sizes have the chance to play their role in recovery whether it be to prevent exploitation of retailers in their energy contracts with an effective watchdog, or to deliver real change in the attitude of banks to lending money. We also need the parties to follow through on the pre-election consensus on the need for grocery market regulation and to set up the ombudsman, which is now two years past due.

The brave new world of non-majority government is populated by unknowns. If it leads to government doing less we could see important local shop priorities such as energy company regulation teetering and possibly falling from the agenda. By the same token a government doing less may well be ­imposing fewer new rules and burdens on our sector like alcohol regulation or employment reforms, which many retailers would say is a blessed relief.

James Lowman is chief executive of the Association of Convenience Stores.