Retailers have urged Chancellor John Healey to reduce business costs in the upcoming Budget next month. The British Retail Consortium (BRC), representing major retailers, has called for action on what it describes as a “triple blow” of rising business rates, employment costs, and energy bills.
This appeal comes as consumer confidence declined in September for the first time in four months, according to new figures from the BRC and Opinium. The data suggests that concerns over inflation and government debt are impacting consumers.
Nearly half of Britons now anticipate the economy will worsen in the next three months, an increase from 44 per cent in August. Additionally, almost a third of consumers expect their personal financial situation to deteriorate in the near term, up from 28 per cent last month, indicating a potential reduction in discretionary spending.
Helen Dickinson, chief executive of the BRC, stated that consumers want the government to prioritise lowering the cost of living in Healey’s first budget. She added that the Chancellor should freeze the business rates multiplier to prevent another tax increase.
Further data indicates a slowdown in the UK economy, with private sector growth reaching a three-month low in September. The S&P Global PMI index, which monitors the manufacturing and services sectors, decreased from 52.5 in August to 51.7 last month.
Chris Williamson, S&P’s chief business economist, noted that this data suggests the wider economy is growing at a rate of 0.1 per cent each quarter. He highlighted a “worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures,” alongside subdued business confidence and high costs deterring hiring.