Retailer plea to lift festive tax burdens

The British Retail Consortium (BRC) wants Chancellor George Osborne to restore some confidence by softening fuel duty and business rate increases in his autumn statement later this month.

The BRC, which represents 60 per cent of retailers, revealed a 0.6 per cent drop in retail sales values in October. They warned last month that retailers are facing a potential £350m jump in their business rates bill following September’s 5.6m per cent surge in retail price index inflation.

The retail sector has suffered at the hands of a consumer spending squeeze driven by the spiralling cost of living, sluggish wage growth and a dearth of confidence in the economy.

The BRC’s monthly retail sales monitor found total sales were up 1.5 per cent in October but food sales growth slowed to its weakest level since June.

The record-high temperatures in the first week of October drove food sales, the BRC said, but these slowed considerably as households looked to promotions and value good to stretch tight budgets. The mild weather hit sales of winter coats, jackets and heavier knitwear, the BRC said, but overall clothing sales posted a slight increase.

Howard Archer, chief UK and European economist at IHS Global Insight, added: “It is hard to be optimistic about the prospects for consumer spending.”