In the recent King's Speech, Sir Keir Starmer unveiled Labour's ambitious workers' rights plans, guaranteeing the right to flexible working from "day one" whenever feasible. While this policy aims to modernise the workplace, small shop owners in England are voicing strong concerns about its potential impact on their businesses.
The proposed legislation intends to make flexible working the default for all workers from their first day, except where it is not reasonably feasible. The bill also seeks to ban zero-hour contracts, protect employees from wrongful termination, and ensure prompt access to parental and sick leave. Labour initially outlined these measures in July 2021, with Deputy Leader Angela Rayner emphasising that the policy is about broader flexible working rights, not just working from home.
Small Businesses Sound the Alarm
Despite the progressive intent behind the policy, independent small businesses in Scotland and England are warning that such changes could be disastrous. They predict a potential 60 per cent decline in foot traffic, echoing the challenges faced during the COVID-19 lockdowns. Newcastle's main street businesses have been particularly vocal, forecasting significant drops in revenue if office workers shift to remote work.
"It is not a good idea at all," said George Koumpanakis, an employee at Acropolis, a Greek restaurant inside Grainger Market. Koumpanakis, 49, highlighted that their business heavily relies on office workers visiting during lunch breaks. He fears they will "probably lose around 60 per cent of business" if the policy is implemented.
Koumpanakis pointed out that the market thrives on the daily influx of office workers. "When people come into work, they might buy a coffee from the market and come here for lunch, but they are not going to be doing that if they're allowed to stay in the house from their first day."
Additionally, Koumpanakis expressed concerns about the mental health impact of working from home, which was notably problematic during the lockdown. "I don't even think working from home is good for the workers because it makes them more depressed," he said. "We have already seen the effect when people were at home during COVID, and now we might be going back to that."
Impact on Retailers
Joss Elder, co-owner of King Baby Bagels, echoed Koumpanakis' sentiments. His business also depends on the lunchtime crowd from local offices. "We rely on customers who work in town," Elder said. "In the past, when things have changed, we've tried not to stress, but this time, we will have to adapt."
To mitigate potential losses, Elder has been using food delivery apps like Deliveroo, JustEat, and UberEats. "If people start working from home more, then hopefully we will see an influx of people using the apps, but we don't know that, so there's a lot of uncertainty," he explained.
While many small business owners are opposed to Starmer's plan, some, like Matthew Lawrence from Firebrick Brewery, are more receptive. "It depends on how many people take up the work-from-home option," said Lawrence, 23, acknowledging that independent retailers will be affected regardless. "We do get some who come here while they're at work. They come and buy cans and vouchers for office tombolas."
Calls for Government Support
Lawrence urged the government to support local businesses during this transition. "I want to see the Government help places like this," he said, suggesting that the Labour government should "bring the 20 per cent VAT on alcohol back down because that is a lot."
The apprehension among small business owners is palpable, as they fear the economic repercussions of a widespread shift to remote work. The policy, while aiming to enhance workers' rights and flexibility, poses a significant challenge for businesses that depend on daily foot traffic from office workers. The concerns raised by shop owners in Newcastle reflect a broader anxiety across the UK, as the nation grapples with balancing progressive workplace policies with the economic realities of local businesses.
