by Matt Trinder

Industrial reporter

THE government must act urgently to save jobs after online fashion retailer Boohoo’s acquisition of yet more high-street brands, shopworkers’ union Usdaw and major retailers said today.

Boohoo has confirmed the takeover of Burton, Wallis and Dorothy Perkins from Sir Philip’s Green failed Arcadia group, which went into administration last year.

The deal includes the brands and online businesses, but not the 214 shops nor 2,450 workers employed in them.

This follows Boohoo’s acquisition of Debenhams, with rival online firm Asos also buying Topshop, Topman, Miss Selfridge and HIIT from Arcadia last week.

Usdaw general secretary Paddy Lillis has signed a joint letter with Tesco, Morrisons and Asda and others calling on Chancellor Rishi Sunak to commit to changes to business rates in next month’s budget.

The union is also demanding an online sales tax to help support businesses with large property costs.

Mr Lillis said: “Nearly 180,000 retail job losses and around 20,000 store closures last year lay bare the scale of the challenge the industry faces.

“There must be fundamental reform of business rates. Retailers need clear and decisive action from government to make this outdated and imbalanced commercial property tax fairer.

“An online sales levy set at 1 per cent would raise around £1.5 billion, which could fund a cut in retail business rates of around 20 per cent.”

Usdaw national officer Dave Gill said: “What retail needs is a joined up strategy of unions, employers and government working together to develop a recovery plan.

“Usdaw has long called for an industrial strategy for retail, as part of our ‘Save our Shops’ campaign, to help a sector that was already struggling before the coronavirus emergency.”

The initiative is calling for the business rates holiday to be extended beyond March, an immediate review of rental values and lease arrangements, and reform of UK tax law to tackle tax avoidance and the use of offshore havens.

The campaign is also demanding additional funding for local authorities so they can invest in their local economy and investment in skills for retail workers with more apprenticeships.

“Retail is crucial to our town and city centres, it employs around three million people across the UK,” Mr Gill said.  

“The government must take this seriously; we need a recovery plan to get the industry back on its feet.”