CEO Letter

Walpole welcomes the appointment of Rishi Sunak as Prime Minister

Following the resignation of Liz Truss, Rishi Sunak is now the leader of the Conservative Party. Here, Walpole's Chief Executive Officer Helen Brocklebank sends her congratulations - and breaks down what the new Prime Minister needs to do to support the British luxury sector...
25th Oct 2022
CEO Letter Walpole welcomes the appointment of Rishi Sunak as Prime Minister

Dear Members, 

 

The appointment of Rishi Sunak as Prime Minister brings the promise of much-needed stability and certainty – and I know you will join me in welcoming the news.

The economic turbulence of the last few weeks, with decisions in Westminster exacerbating an already challenging global situation, has been hard for all businesses, not least the British luxury sector. What Walpole brands need, above all, is for Mr Sunak to deliver a laser-like focus on building market confidence so that crucial investment decisions can be made: it is these decisions that will help drive growth across the UK and which will help protect and create jobs in British luxury businesses the length and breadth of the country. I am confident that he will make this a priority of his premiership. 

As Chancellor, Mr Sunak showed he could respond decisively in times of crisis – during Covid, the furlough scheme was a lifeline for many Walpole members and his pledge to serve with "integrity and humility" as Prime Minister and "to bring our party and our country together [to] overcome the challenges we face and build a better future" is exactly what is needed right now as we face continued, yet different, crises. 

I can’t write this note without addressing the elephant in the room: all of you will be very aware that Mr Sunak was, when Chancellor, the architect of the abolition of tax-free shopping. When the current Chancellor, Jeremy Hunt, rowed back on the recent decision to reinstate it was disappointing, but understandable given the toxic political fallout of the mini-budget. 

Yesterday’s DCMS Select Committee report describes this decision as a “spectacular own goal” and highlights that the “scheme could at the very least have been cost neutral”, as well as making clear that that the benefits would far outweigh any costs. Something we have argued for a long time. 

As a sector, we remain resolute that tax-free shopping is a fundamental growth driver for Britain’s £30bn high-end tourism economy and its revival may seem to you a forlorn hope with Mr Sunak in Number Ten. Nevertheless, I don’t think we should despair. I feel confident that we will, in time, win the argument. The current battle may be lost, but the war is far from over.

However, I do believe, for now, we must be prepared to play the long game. As Mr Sunak said yesterday, the UK is a great country with profound economic challenges, and he has an unimaginably daunting task ahead. The priority must be the pursuit of the stability and sound policy making that will help resolve the most urgent challenges as swiftly and effectively as he did when faced with the Covid crisis. 

Today, on behalf of Walpole member brands, I would urge the Prime Minister to prioritise helping businesses and their employees with the impact of the cost of living and energy crisis, and to implement the policies that will help calm the financial whirlpool of inflation and interest rates. But looking further ahead, British luxury can only turbocharge its growth potential if it’s tax-competitive with its EU neighbours and can double down on its natural advantages in high end tourism, the creative industries and in sustainability. We hope that, once he’s had a chance to reduce the in-tray, he will make that a defining feature of his premiership.

Yours sincerely,

 

Helen Brocklebank

Chief Executive Officer, Walpole

 

Picture credit: Pippa Fowles / No 10 Downing Street.

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