Wigwam Toys

A Message from Lord Pickles and Lord Blunkett, followed by Wigwam Toys's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Wigwam Toys is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Rt Hon The Lord David Blunkett

Rt Hon The Lord Eric Pickles

wigwamtoys.co.uk/

1WIGWAM TOYS |

BEST PRACTICE SPONSOR 2020

Shop owner Clair Letton

and Floor Manager

BenjaminRowling

Inside Wigwam Toys

Wigwam Toys is an independent, family-run toyshop in

Fiveways, Brighton, dedicated to providing beautifully-

designed and quality traditional toys. Owner Clair Letton

says the company prides itself on its ability to sell toys and games that

remind people of their childhood, and the team go out of their way

to bring new and innovative toys to the marketplace. She discusses

with

The Parliamentary Review

the provision of a personal service

to customers and the joy of helping them find the perfect toy.

The way we shop has changed and online shopping is here to stay, but with

sensitive legislation around small business lending and taxation, as well as creative

business owners, there is no reason why we cannot have both a successful high

street and a successful online business community.

Higher rents and homogenisation

Twenty years ago, our high streets were a healthy mixture of chains and independent

business, ensuring choice for the customer. Higher rents have driven many independent

businesses away from our main shopping centres, meaning only those stores with

financial clout can occupy high street space. This has led to homogenisation and a lack

of choice and variety, with identical chain stores in every city.

The pendulum swung in favour of online and out-of-town shopping centres, reducing

the number of small businesses and local specialty stores. However, I firmly believe that

shoppers still want a retail experience and human interaction. In order to attract customers

back, businesses need to adapt and to offer their customers something different; a

sense of theatre, a personal or curated experience that is unique to physicalstores.

FACTS ABOUT

WIGWAM TOYS

»Owners: Clair Letton and

JesseMarshall

»Established in 2013

»Based in Brighton

»Services: Independent toyshop

»No. of employees: 8

»www.wigwamtoys.co.uk

Wigwam Toys

THE PARLIAMENTARY REVIEW

Highlighting best practice

2| WIGWAM TOYS

More than just a shop

A successful small business in the

retail world is more than just a shop.

It provides flexible employment for

local people, puts money back into

the community, a friendly face and an

asset to the area around it. A thriving

community should include, and can

support, a thriving businesscommunity.

The financial crisis and subsequent

tightening of lending regulations has

meant fewer businesses are being

born. In order to regenerate our high

streets and revitalise the retail sector,

we need to allow the one-man band,

the family shop and the start-ups in

on the game. In order to do this, there

needs to be an agreed-upon definition

of what constitutes an SME, as well as

specific lending and taxation policies

for microbusinesses.

Once microbusinesses are established,

local government policy has a large

part to play in their success or failure.

Town planning, public transport and

traffic management can have a huge

impact on whether shops succeed. If

customers find it difficult or costly to

get to their local shopping centres,

they will simply buy online, leading

to more store closures. We need to

be making it easier for those minded

to open businesses to do so. If

regeneration is to happen, it needs to

be nurtured from the ground up.

Keeping things fresh

We know that our success as a small

community-based business is our

customer appeal. We have limited

retail space, which means we buy

small quantities of stock on a regular

basis. As we are in a residential area,

and don’t rely on tourist or town

centre trade, we need to make sure

our customers who pop in weekly see

something new. Being small works

to our advantage, as we can work

with new and emerging companies,

supporting them by placing small

orders, trialling products in the store

and providing feedback. They get retail

exposure and we get to show our

customers exciting new products they

won’t find elsewhere. It is mutually

beneficial, and an example of how

microbusinesses can help each other to

grow into small or medium businesses.

The way we view the shopping

experience has to change as well. If

rents remain so high, landlords need to

be flexible regarding the tenancies they

accept. As an example, a former clothing

store that had been vacant for a year has

reopened with three microbusinesses

in residence, accessible through one

entrance. This creative thinking is vital

to our high streets’ survival and it is

vital that our microbusiness sector is

nurtured and taken into consideration

when making policy. New growth

must be cultivated otherwise there is

nothing to replacedeadwood.

Getting tax right

The taxation burden that falls on

small business means that small policy

changes can have a big impact on a

business’s viability. Last year, Justin

King suggested that VAT rates should

increase to 22 per cent and business

rates should halve, to help save

the high street. To me this shows a

fundamental lack of understanding

about the small businesses that make

up the heart of the UK retail sector.

If VAT rates were to increase, there

would have to be a price increase

to consumers, hitting the small

independent sector hardest and

actually speeding up the closure of

many high street and community

stores. His assertion that halving

business rates compensates for the two

per cent increase in VAT is incorrect.

Under small business rate relief many

small businesses currently pay very

little in business rates, but for most the

biggest single outgoing is the VAT bill.

In order to

regenerate

our high

streets and

revitalise the

retail sector,

we need to

allow the one-

man band, the

family shop

and the start-

ups in on the

game

“

3WIGWAM TOYS |

BEST PRACTICE SPONSOR 2020

The difficulty lies in the description of

what constitutes a small business. The

political notion of an SME is undefined,

but the EU defines microbusiness as

fewer than 10 employees and turnover

of more than £2m, small business as

fewer than 50 employees and turnover

of more than £10m and medium

business as fewer than 250 employees

and turnover of more than £50m.

Part of the problem for businesses like

ours is that while legislation, which is

made with an uncertain target may be

intended to help, it can prove harmful,

as the very nature and scale of our

business is ignored when making

policy. Larger companies may benefit

from business rate reduction, but they

also already benefit favourably from

bulk purchase discounts and economies

of scale, enabling them to undercut

smaller businesses and offer products

at lower cost to the consumer, further

harming smallerretailers.

The Treasury’s review of business rates

is certainly welcome. Currently, it is a

complex web of rates and exemptions,

attached to original legislation created

decades ago that is not fit for the

purpose. Any new legislation should be

cut from new cloth, with consideration

given to all sizes and tiers of the UK

business community.

Adjusting to current challenges

Running a business during the Covid-19

pandemic has been a challenge to

us all. For small and microbusinesses,

the entrepreneurial mindset has been

key to our survival. It’s the ability

to think creatively and to solve the

problems that allows you to thrive, be

that supply or delivery issues, staffing

shortages or reduced footfall.

I know many have spoken about

increased community spirit.

Consumers have rediscovered, or

perhaps discovered for the first time,

the satisfaction of being part of a

community. For many the lack of readily

available resources during lockdown,

lead them to seek alternatives to the

supermarkets and larger stores. This

put them into contact with their smaller

local businesses, who are adaptive,

responsive and able to deliver the level

of personalisation and customer service

that we were once more used to, but

has declined in many of our largest

stores and on our high streets.

The inability to physically shop in the

way we used to, financial anxiety and

breaking from routine has led many

to examine their shopping habits and

question what we really need to be

happy or satisfied. Certain business

models no longer seem sustainable,

stores that rely on high volume sales

of cheap products no longer seem

soattractive.

My hope is that out of the ashes of

the pre-coronavirus retail landscape,

small retailers will be able to rise and

continue to grow, to be supported by

customers who can see the value in

what we have to offer.

My hope is that

out of the ashes

of the pre-

coronavirus

retail landscape,

small retailers

will be able to

rise and

continue to

grow

“

Co-owners Clair Letton

and Jesse Marshall, with

Floor manager Benjamin

Rowling, outside

Wigwam Toys

wigwamtoys.co.uk/

This article was sponsored by Wigwam Toys. The Parliamentary Review is wholly funded by the representatives who write for it.

Rt Hon Michael Gove's Foreword For The Parliamentary Review

By Rt Hon Michael Gove

This year's Parliamentary Review comes at a momentous time for parliament, as we collectively determine the destiny of the United Kingdom.

On October 31, the UK will leave the European Union. The successful implementation of this process is this government's number-one priority.

Three years after a historic referendum vote, we will deliver on the decisive mandate from the British people. Trust in our democracy depends on it. Until that final hour, we will work determinedly and diligently to negotiate a deal, one that abolishes the backstop and upholds the warm and close relationship we share with our friends, allies and neighbours in the EU. But in the event that the EU refuses to meet us at the table, we must be prepared to leave without a deal.

As the Chancellor of the Duchy of Lancaster, it is my job to lead on this government's approach, should that scenario happen. Preparing for Brexit is my department's driving mission. But while I am leading this turbocharged effort, the whole of government is committed to this endeavour.

Ministers across Whitehall are working together to ensure that every possibility is considered, every plan is scrutinised and every provision is made. A daily drumbeat of meetings means that we are holding departments accountable, so that preparations are completed on time.

The chancellor has confirmed that all necessary funding will be made available. And we have mobilised thecivil service, assigning 15,000 of our most talented civil servants to manage our exit from the EU.

We will make sure that on November 1, there is as little disruption to national life as possible. Our trade relationships will continue to thrive, thanks to agreements with countries around the world worth £70 billion. Our country will remain secure, thanks to nearly 1,000 new officers posted at our borders. And the 3.2 million EU nationals now living and working among us can remain confident, with absolute certainty, of their right to remain in the UK.

Above all, our goal is to be transparent. Soon, we will launch a public information campaign so that citizens, communities and businesses are ready and reassured about what will happen in the event of “no deal”.

In my first few weeks in this role, I have travelled to ports and tarmacs, borders and bridges, all across the UK –from the seaside of Dover to the rolling green hills of County Armagh. I have heard from business owners and border officials, farmers and hauliers. They are ready to put an end to uncertainty. And they are ready to embrace the opportunities ahead.

Our departure from the EU will be a once in a lifetime chance to chart a new course for the United Kingdom. Preparing for that new course will be a herculean effort. But this country has made astounding efforts before. We can do it again.

Rt Hon Michael Gove
Chancellor of the Duchy of Lancaster