I know many Walpole members will have already heard the news, confirming the much-anticipated appointment of Liz Truss as the leader of the Conservative Party and the UK’s new Prime Minister.
Later this week, I will be writing to congratulate her on her new role. I will also be putting forward the particular needs of the British luxury sector, underlining our contribution and outlining what we need in order to play our part in growing the economy, as we all work to weather the extraordinary economic storm we are facing.
British luxury is a £48bn powerhouse - a showcase of the very best of which we are capable in this country. With 80% of what is produced by the sector destined for overseas markets, it’s an export phenomenon and a global calling card for British innovation and creativity. Its founders and leaders are adept in driving value creation, and the 250+ brands in Walpole membership invest in their highly productive businesses and create long-term, highly-skilled employment for their valued employees the length and breadth of the country. What’s more, with British luxury responsible for 2.2% of the country’s GDP, it makes an invaluable contribution to the exchequer - £7.4bn equivalent to funding a third of all NHS nurses’ salaries. I am hopeful that we will now have a Prime Minister who recognises that British luxury is the jewel in the crown of British business and has outstanding expertise and insight to offer the Government on topics as broad as trade, sustainability, skills, and taxation.
When Ms Truss was International Trade Secretary, she and her team demonstrated a strong understanding of the value and values of our sector and I remember her outstanding work to help remove the punitive tariffs imposed on British luxury goods – Scotch whiskies, cashmere, suiting for example – by the US when luxury was the collateral damage in the Airbus-Boeing dispute. Her time in Department for International Trade will also have given her clear view on the role high-value international visitors to the UK play in supporting exports of high-end goods, and the importance of reinforcing the UK’s competitiveness with continental Europe. I am heartened by the appointment of someone who has shown she understands the importance of British luxury brands to such a key role, and as we look forward to learning more about her priorities, I will be back in touch to share Walpole’s response.
One thing is certain: the scale of the economic challenge facing the government is vast. Having spoken to many of you in recent weeks, the impact of inflation and especially energy costs on your businesses is already biting hard, and I know you are deeply concerned about the cost of living crisis facing the people you employ. It was encouraging to read, in yesterday’s Sunday Telegraph, of Ms Truss’s promise that “[her] approach will be two-fold. The first will be taking immediate action to tackle the cost of living for families and businesses. The second is delivering a broader plan to get our economy growing, make it more resilient and make it more competitive. Getting Britain growing again is essential.”
British luxury, with its commitment to innovation and enterprise, is ready to play its part in generating the growth that Ms Truss talks about. To deliver this, the Government must play its part in creating the conditions necessary for businesses to thrive. I hope that if the challenges of the coming months can be brought under control, the Government can build on Ms Truss' campaign commitments to create such an environment.
I am sure you will all have your own thoughts and views following this announcement, and we'd be grateful if you could share any thoughts or first impressions you have in the coming days with me (email Helen here). I will also be following up this note with another one once we know the shape and composition of the wider Government. I am keen that we make inroads by reaching out to new ministers as they are appointed and emphasising the challenges the sector faces. I would welcome any ideas or insight you may have about what the changes in Government may mean in particular for your business.
Chief Executive Officer, Walpole
