【United Kingd】IN DEPTH: What the Jewellery Industry Wants from the New Government – Jewelry and Gem

Editor’s Note

As a new UK government takes office, we examine the policy support the jewellery industry is calling for to ensure its future growth and resilience.

Boosting Business Rates

The General Election marks a crucial moment for the UK jewellery industry. With a change in government, what vital support does the industry need from policymakers to safeguard this trade?
On Thursday, 4 July, the Labour Party won the UK General Election in a landslide victory, securing 412 of 650 seats and ending 14 years of Conservative government. With the new Prime Minister, Keir Starmer, now moved into 10 Downing Street, the jewellery trade shares its demands for the new Labour government, after a challenging few years marked by cost-of-living and geopolitical tensions.
Considered by some to be a niche industry, the jewellery trade plays a crucial role in the national economy, employing thousands of people, from designers and artisans to craftsmen and sales representatives. It also “fosters innovation and preserves traditional craftsmanship,” shares Lauren Scattergood, marketing coordinator of Birmingham-based jewellery manufacturer Hockley Mint.

“Jewellery has cultural and historical significance, often being a part of traditional practices and ceremonies […]. This cultural importance drives domestic demand and tourism.”

According to global research firm IBISWorld’s analysis report published in June 2024, the UK jewellery trade hired 3,661 employees in jewellery manufacturing roles and a further 48,641 in jewellery retail roles (according to its April 2024 report), as well as providing £986.2m in revenue. Despite being a key cornerstone of the luxury industry, supplying the UK with a diverse range of careers, businesses in this trade are still struggling.
Many industries have felt the sting of the current economic climate, and the jewellery industry is no different. Ben Massey, the chief executive of the National Association of Jewellers (NAJ), reveals:

“The priority [for the new government] is very much about the economy and being able to stimulate that and build consumer confidence, which will really help the whole value chain within the industry. When we group some of the most expensive costs to a business, such as people, rates, rents, energy – these are all areas that have really spiralled in recent years, so getting a hold on the costs to do business, as well as stimulating the economy is critical.”

The Labour manifesto, published on 13 June, shows positive plans to address the UK’s economy, revealing the party’s commitment to overhauling the current business rates system and pledging to “raise the same revenue but in a fairer way”. Labour highlights that the current business rates system deters investment, burdening the high streets. The new system aims to level the playing field between the high street and online businesses, better incentivise investment, occupy the empty properties and provide support to foster entrepreneurship.
Already optimistic about the change in government, Helen Dickinson, the chief executive of the British Retail Consortium, explains:

“Labour recognised that the business rates system is broken. With retail paying 22% of the total rates bill while accounting for 5% of the economy, it is the number one thing in the way of increased retail investment which could unlock growth across the economy. So, we look forward to further engagement on the details as the work starts here in turning commitments into delivery.”

Impact on Retail and High Streets

The change to the business rates system is important; however, more needs to be done to rejuvenate the high street. Emmet Cummins, managing director of buying group the Company of Master Jewellers, gives his insight into what bricks-and-mortar businesses have experienced over the past year. He says:

“The high street is suffering from reduced footfall, leading to high numbers of vacant premises, which in turn reduces footfall further, and on goes the spiral downwards.”

He highlights that the new government must provide tax breaks for these businesses and provide further incentives that encourage retailers and brands to return to the high street.

“The next government should seek to stimulate this economic model, not only because it benefits retail businesses, but because it enhances a community and gives a return on investment through VAT as well as revenues generated through the increased use of public services,”

he adds.

Combatting Retail Crime

Another challenge facing retailers is crime.

“Organised crime targeting our sector has, as we are all too aware, increased significantly in the past few years. I would want the new government to understand the scale of this threat and the implications it has to the trade and the wider community,”

shares Cummins.

“As much as I believe the police and supporting security services are doing a good job, this matter is significant and not going away. Greater resources and greater investment cracking down specifically on these organised gangs is needed.”

The BRC’s Dickinson adds,

“Crime remains a major issue, affecting both the wellbeing of staff and customers, and creating huge costs for retailers. “[Labour] must introduce a standalone offence for assaulting or abusing a retail worker. Putting this in place would provide a solution in the fight against retail crime.”

Manufacturing matters

Retailers on the high street are not the only ones experiencing challenging times. Scattergood highlights that British jewellery manufacturers are continuing to face “a turbulent economy with a cost-of-living crisis, unstable metal prices, high interest rates, and persistent geopolitical concerns affecting countries worldwide. Jewellery manufacturers, who depend heavily on global supply chains for materials like gold, silver, diamonds and gemstones, and are reliant on favourable exchange rates, are particularly vulnerable.”

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⏰ Published on: July 30, 2024

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