Tax rises would force up prices for customers, retailers warn Reeves
Rachel Reeves was called not to increase taxes in the autumn budget, Britain’s largest retailers could trigger higher store prices and can have an impact on both household revenues and economy.
A report from the British Retail Consortium (BRC) found that 56 percent of retail financial chiefs representing more than 9,000 stores were “pessimistic ında for the next 12 months.
A number of major retailers, including Iceland, Poundland and New Look, come after explaining the closing of the store between the Serpin, the decision to reach the national insurance for employers in the first budget of the chancellor.
Helen Dickinson, General Manager of BRC, called the chancellor not to add more costs to retailers and high streets in the next budget and will be the British people who suffer from influence on inflation ”.
“Retail was on the ignition line of the last budget, the industry fell £ 7 billion in new costs and taxes,” he said.
“Retailers did everything they could to protect their customers from higher costs, but considering the increasing cost of thin margins and employing personnel, price increases were inevitable.”
Dickinson added: “The results are now felt by household people because they are struggling to cope with the increasing cost of weekly stores.
“It is up to the chancellery to decide whether to fan the flames of inflation or to support the daily economy by supporting the high street and the local works they provide.”
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The ministers squeezed significant savings from their departments in the interruptions announced in the expenditure examination of June, so there is a expectation that the chancellor will be forced to raise taxes.
BRC’s report warned increasing food inflation and estimated that it would reach 6 percent by the end of the year – it is a “important challenge ına to the household budgets up to four percent from four percent to Christmas.
85 percent of the chief financial officials, their businesses had to increase prices as a result of the last budget of the last budget to increase the national insurance and national life fee, and two -thirds (65 percent) increased more than next year.
Apart from cost increases, 42 percent of the chief financial officers made frozen recruitment, 38 percent of them reduced the number of jobs in the store, he said.
BRC said that this was reflected in the official business figures and that it was reflected in the first quarter of 2025 with approximately 100,000 less retail than the previous year.
More than one -third of CFOs (38 percent) said they reduced investment in local communities, 15 percent of them delayed opening new stores, he said.
Previously, the weighing came by World Research Company by WorldPenel by the counter by WorldPenel, the UK grocery prices increased at the fastest speed for 18 months due to the increase in the increased concerns of shoppers about the increasing cost of life.
Grocery price inflation rose from 4.7 percent one month ago to the highest level since January 2024 to 5.2 percent in four weeks until July 13.
The data showed that increasing prices will add an average of £ 275 to the annual grocery expenditures of shoppers.
A HM Treasury Spokesman said: “We are a business world that limits the company tax and makes major trade agreements with the EU, the US and India, reduce costs, protect jobs and fuel growth.
“865,000 employers do not pay to employers because we increase employment allowance, and as stated in the change plan, the best way to strengthen public finances is our economy. The changes in tax and expenditure policy are not the only way to do this, as seen in our planning reforms that are expected to grow up to 6.8bn £.
