Budget not enough to lower cost burden bearing down on UK shops: BRC

“This budget is a missed opportunity for retail and the three million people who work in the industry, and it prevents retail from maximising its contribution to the government’s levelling up agenda,” she said.

“It’s a mixed bag of announcements from the chancellor, which falls far short of the truly fundamental reform that is needed and was promised in the government’s 2019 manifesto,” she said.

BRC welcomed the property investment relief and green investment relief, both of which the BRC has called for, which will provide some support for much needed investment in green technology and property improvements.

“While the Government’s 50 per cent bridging relief for 2022-23 may prove to be beneficial for the smallest businesses, it will do little to support the businesses that pay two thirds of retail business rates and employ 1.5 million people. With no reduction in the burden, this will lead to the unnecessary loss of shops and jobs and fails to incentivise investment in all parts of the country. This is bad news for every member of the public who wants a vibrant high street in their local community, with retail at its heart,”  Dickinson said.

BRC strongly supported the intention to raise wages in the industry.

“Currently, retailers are grappling with an assortment of government-imposed costs – higher National Insurance Contributions, higher Corporation Tax, sky high business rates – at a time when sales are slowing and supply chains are experiencing significant disruption. Unfortunately, the combined impact of additional costs will add to the pressure on prices - with three in five retailers saying that prices will rise before Christmas,” she added.

Fibre2Fashion News Desk (DS)