A year on: Addressing the needs of the hospitality and retail sectors

Tony Elvin (pictured), general manager at Touchwood Solihull participated in the Business Commission research in 2023.

His insights from the retail and leisure industry, amongst contributions from others, have been vital in informing the ‘Roadmap for Business Growth’ report.

In this blog, Tony has identified a series of action points for stakeholders which align with the findings of the Commission.

It’s been a year since the publication of the Business Commission West Midlands first phase report.

While the needs of hospitality and retail venues in Solihull and the wider West Midlands region remain consistent, the opportunity to enact meaningful change has become even more pressing.

At Touchwood, we’re proud to be one of the few shopping centres in the UK with 99 per cent tenant occupancy.

Our footfall is strong, and tenant sales have continued to grow since the pandemic. We’re fortunate to be anchored by John Lewis and located in the thriving borough of Solihull.

That said, much of our success stems from proactive efforts—navigating the pandemic effectively, supporting our tenants during challenging times, and benefiting from ongoing investment that keeps Touchwood an attractive destination for both visitors and retailers.

However, despite the perfect platform for success, here in Solihull, profitability for our tenants continues to fall. To unlock greater potential for our tenants, our community, and the region, retailers and restauranteurs need more support from the Government.

Here's how we can work together to make this happen:

1 Enhanced transport links across Solihull

Transport connectivity remains a critical area for improvement.

Despite our strong visitor numbers, staffing challenges persist. Over the festive season, several vacancies went unfilled, leading some stores to operate below capacity. One new tenant, for example, faces a 40 per cent employee vacancy rate.

Better transport links connecting the north and south of Solihull would help match workforce availability with employer needs, while also encouraging greater shopper access to Touchwood.

This aligns with key priorities for our mayor, and we hope meaningful steps will be taken in the coming year to improve connectivity, benefitting both businesses and communities.

With the Chamber’s support, we will continue advocating to the mayor, council, and local MPs for progress on this front.

2 Modernising the business rates system

We welcomed the Labour Party’s manifesto commitment to reform business rates, promising a fairer system to support high streets and ensure online retailers contribute their fair share.

Similarly, around the Government’s Autumn Budget this pledge was reiterated.

However, delays to these reforms, now pushed back to 2026/27, coupled with reductions in business rates relief and rising employer costs, have placed undue strain on businesses.

This has already led to closures locally and nationally, with remaining businesses are forced to make tough decisions that impact both employees and customers.

A reformed system would give businesses the certainty and financial stability needed to grow, create jobs, and invest in their communities.

3 Addressing workforce challenges

The UK hospitality sector contributes approximately £91 billion to the economy but continues to face significant workforce challenges.

While strides have been made in improving working conditions, current labour shortages risk undoing this progress.

Research highlights that staffing shortfalls are leading to increased workloads and burnout among employees, which in turn drives further turnover.

Yet, we know the potential workforce exists—unemployment rates among young people in the West Midlands are double the national average.

Retail and hospitality offer excellent pathways for employment and skill development.

At Touchwood, we actively collaborate with schools, colleges, and the council to promote these industries as viable careers. Improved transport links would help expand access to local labour markets, but there’s also room to explore new approaches—whether through addressing the post-Brexit landscape or providing work opportunities for individuals awaiting asylum outcomes.

By broadening access and providing the right training, we can strengthen these vital sectors while supporting economic growth.

4 Building confidence in the future

Touchwood has had a strong year, but consumer and business confidence remain fragile. Growth thrives on optimism, and creating a sense of positivity and possibility is essential for encouraging spending and investment.

Historically, moments of political change have been accompanied by a boost in national morale, fostering optimism and forward momentum.

Many of us will remember the arrival of Tony Blair’s Government in 1997, heralding a new era to the tune of ‘Things can only get better’ by D:Ream.

Unfortunately, we just haven’t had the ‘feel-good’ boost in national confidence we’d normally expect after a general election this time around.

I call on the Government to prioritise initiatives to reinvigorate consumer and business confidence, ensuring communities like Solihull can continue to prosper and give hope for others.

As a local business hub, we are keen to embrace new opportunities and work collaboratively to support our region’s growth.