The government is to set up a forum so retailers can feed into the formulation of policy at the earliest stage of development.

The forum will comprise senior figures from government and the retail sector, and was recommended by the Retail Strategy Group, which handed a report to the DTI on Thursday.

The group was formed in late 2002 to investigate how retailers could work more closely with government to improve competitiveness in the sector.

RSG chair, Asda chief executive Tony DeNunzio, said: “The retail industry and government must now step up to the challenge of engaging and co-operating on the right issues.”

Other recommendations in the report include setting up a forum for those involved in the planning process; improving data collection on the sector, and making all government policymakers spend at least one week a year in business.