4 things Sainsbury’s CEO Simon Roberts wants from the next government

Sainsbury’s CEO Simon Roberts has called out the four big things he wants to see from the next government, as the election looms this week.

Following the grocery giant’s first results, which saw it toast “market-beating grocery performance”, Roberts insisted Sainsbury’s had been “engaging very actively before the election started with all political parties”.

He added that he had been “encouraged” by the willingness to engage, and emphasised the importance of “active engagement between government and businesses” over the next few years “to solve the big things” it needs to solve.

1. Business rates reform

The first big thing Roberts wants the government to tackle is the longstanding issue of business rates.

The business rates system has long been criticised by retailers, with companies claiming they are out of date, favour online retailers, and lead to vacant properties.

Retailers and trade body the British Retail Consortium (BRC) have urged the government to overhaul the tax and planning laws to revitalise high streets.

Roberts says: “It’s a hugely unfair and damaging tax that is causing a lot of physical retailers to have real challenges. So business rates reform is absolutely essential.”

If elected, Labour has vowed to replace the business rates system in England. Meanwhile, the Conservatives have pledged £4.3bn of business rates support for small businesses over the next five years, and vowed to increase the multiplier on distribution warehouses that support online shopping.

2. Overhaul apprenticeship levy

Roberts wants to see an overhaul of the “inflexible” apprenticeship levy under the incoming government.

The levy, which was introduced in 2017, means large organisations are charged 0.5% of their payroll to fund apprenticeships.

However, since its introduction the scheme has been met with criticism for having too many restrictions on what the money can be spent on and blamed for a drop in apprenticeship numbers. 

The Sainsbury’s CEO remarks: “To grow our economy, we’ve got to have skills capabilities. The apprenticeship levy is inflexible, it’s not giving us what we need to make sure we can really power a skills based economy.

“Over three million people work in Britain’s retail industry and we need to make sure that we’ve got policies that really support that.”

3. Long term plan for the food system

The supermarket boss highlights the importance of building a long term plan for the food system under the next government.

Food security is an important issue for voters this year, as the extreme weather, geopolitical conflicts, and increasing costs worldwide have impacted food supplies during recent months.

Additionally, while the UK government recently claimed its food security situation was “broadly stable,” it said it faced “longer-term risks” from the climate crisis, according to Carbon Brief.

Roberts says: “From our perspective as a retailer, it’s essential that we really build a long term plan that means we’ve got a resilient, sustainable food system, we grow more food at home, and we have support for farmers that enables them to feel really confident to invest for the longer term.”

His comments come as the big political parties set out messages of support for the farming industry in their manifestos, following farmer protests over the year.

4. Stability and clarity for businesses

Lastly, the Sainsbury’s boss notes that businesses want stability, clarity and strong engagement with the government under the next leadership.

He points out that the most important thing for millions of households and businesses is a “clear sense of stability and a clear sense of the picture going forward.”

Roberts elaborates: “I think lots of people are looking for that clarity and certainty of what’s going to happen next.”

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