UK Retailers Warn Government of Economic Consequences from Tough Budget Decisions

The largest names in the UK retail sector have come together to deliver a message to the Prime Minister that the proposed budget cost burden will have economic consequences for inflation, employment, and investment. Dozens of retail leaders signed a letter warning the Prime Minister that if he continues with budget plans that will increase costs by £7 billion next year, there will be dire consequences for the economy and employment.

The letter was signed by 79 individuals in response to Rachel Reeves' first budget for the British Retail Consortium (BRC) last month, with the draft seen by Sky News last week. As farmers prepare to launch their own protests due to inheritance tax measures, the letter sent by the retail lobbying group to Downing Street was equally harsh regarding the perceived impact of the financial situation.

The letter cautioned that higher costs resulting from measures such as increased employer National Insurance contributions and National Living Wage hikes would be passed on to shoppers, negatively impacting employment and investment. The letter included statements from the UK's largest retailer Tesco's UK chief, along with support from colleagues including the managing directors of Sainsbury's, Next, and JD Sports, highlighting that "Retail is already one of the most heavily taxed sectors alongside hospitality and pays 55% of its profit in business taxes."