Retailers Warn of Rising Prices and Job Losses if Chancellor Hikes Taxes
- British Retail Consortium
- Aug 4
- 3 min read
Updated: Aug 15
New polling from the British Retail Consortium (BRC) shows significant concern among retail finance chiefs, who say government policy is driving up inflation and job losses.
A survey of CFOs (Chief Financial Officers) and Finance Directors at retailers together representing over 9,000 stores comes as the Chancellor is preparing for the next Budget.
Given concerns about potential tax rises on the horizon, 56% of CFOs described their feelings about trading conditions over the next 12 months as “pessimistic”, with only 11% suggesting they were optimistic (33% were neither optimistic nor pessimistic). When asked about the consequences of the last Budget, which saw huge increases to employer National Insurance and National Living Wage, 85% of CFOs said their businesses had been forced to raise prices, with two-thirds (65%) predicting further rises in the coming year. Given inflation has been rising steadily over recent months, with food inflation now at 4.0% (BRC-NielsenIQ Shop Price Monitor), the BRC now predicts food inflation will be up to 6% by the end of the year. This will pose significant challenges to household budgets, particularly in the run up to Christmas.
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