The boss of the British Retail Consortium (BRC) has criticised the Chancellor’s Spring Budget, saying it will do nothing to deliver a better future for retailers and their customers.
Responding to this week’s announcement, Helen Dickinson (pictured), chief executive of the BRC, said: “When shops we love shut down, when jobs we need are absent, and when investment we benefit from is lost, it’s our lives and our communities which lose out.
“Retail employs three million people and invests over £17bn annually, yet the industry’s ambition to deliver a net zero, digitally transformed future with higher skilled, better paid jobs means its potential goes so much further.”
She added: “It seems the Chancellor does not share in our ambition, and today’s Budget will do nothing to deliver a better future for retailers and their customers.”
Ms Dickinson said consumer confidence remains low and retail sales volumes in 2023 were the lowest in four years, but, despite this, the Chancellor has done little to promote growth and investment, instead hindering it with the business rates rise in April.
She commented: “This has consequences for jobs and local communities everywhere – from the smallest villages to the biggest cities.
“The cut to national insurance might go some way to supporting households impacted by the high cost of living. However, unless Government addresses the Government-imposed cost increases, we may yet see the spectre of higher inflation return, limiting the benefits to households of lower national insurance.”
On business rates, Ms Dickinson said: “The Government has had five years to fix the problems with business rates, as they promised in their election manifesto. Retailers pay over £7 billion a year in business rates – over 22 percent of the total raised by the tax. This is disproportionate, destructive, and any government that is serious about growing the economy must address this as a matter of urgency.”
Addressing the issue of retail crime, she said: “The Chancellor noted that burglaries and violent crime had halved. This simply doesn’t tally with the experience of thousands of those working in retail. The number of incidents of violence and abuse rose to 1,300 per day in 2022/23 from 870 the year before. No one should have to go to work fearing for their safety.”
She added: “The Protection of Workers Act in Scotland already provides additional protection to retail workers, so why should our hardworking colleagues south of the border be offered less protection? It is vital that the Government takes action – introducing a new standalone offence for assaulting or abusing a retail worker.”
Currys CEO, Alex Baldock (pictured), also criticised the Budget, branding it “bitterly disappointing”, after Mr Hunt “yet again failed to address retailers’ business rates burden”.
“It’s no wonder that more and more stores are having to close their doors when you look at all the costs retailers are facing,” he said.
“Sky high business rates, coupled with big increases to wages, and misjudged proposals like those on recycling, heap ever higher costs on those of us with physical stores.”
Mr Baldock added that the move will result in “higher inflation, lower growth and fewer jobs”.
Responding to this week’s announcement, Helen Dickinson (pictured), chief executive of the BRC, said: “When shops we love shut down, when jobs we need are absent, and when investment we benefit from is lost, it’s our lives and our communities which lose out.
“Retail employs three million people and invests over £17bn annually, yet the industry’s ambition to deliver a net zero, digitally transformed future with higher skilled, better paid jobs means its potential goes so much further.”
She added: “It seems the Chancellor does not share in our ambition, and today’s Budget will do nothing to deliver a better future for retailers and their customers.”
Ms Dickinson said consumer confidence remains low and retail sales volumes in 2023 were the lowest in four years, but, despite this, the Chancellor has done little to promote growth and investment, instead hindering it with the business rates rise in April.
She commented: “This has consequences for jobs and local communities everywhere – from the smallest villages to the biggest cities.
“The cut to national insurance might go some way to supporting households impacted by the high cost of living. However, unless Government addresses the Government-imposed cost increases, we may yet see the spectre of higher inflation return, limiting the benefits to households of lower national insurance.”
On business rates, Ms Dickinson said: “The Government has had five years to fix the problems with business rates, as they promised in their election manifesto. Retailers pay over £7 billion a year in business rates – over 22 percent of the total raised by the tax. This is disproportionate, destructive, and any government that is serious about growing the economy must address this as a matter of urgency.”
Addressing the issue of retail crime, she said: “The Chancellor noted that burglaries and violent crime had halved. This simply doesn’t tally with the experience of thousands of those working in retail. The number of incidents of violence and abuse rose to 1,300 per day in 2022/23 from 870 the year before. No one should have to go to work fearing for their safety.”
She added: “The Protection of Workers Act in Scotland already provides additional protection to retail workers, so why should our hardworking colleagues south of the border be offered less protection? It is vital that the Government takes action – introducing a new standalone offence for assaulting or abusing a retail worker.”Currys CEO, Alex Baldock (pictured), also criticised the Budget, branding it “bitterly disappointing”, after Mr Hunt “yet again failed to address retailers’ business rates burden”.
“It’s no wonder that more and more stores are having to close their doors when you look at all the costs retailers are facing,” he said.
“Sky high business rates, coupled with big increases to wages, and misjudged proposals like those on recycling, heap ever higher costs on those of us with physical stores.”
Mr Baldock added that the move will result in “higher inflation, lower growth and fewer jobs”.
Here are some of the key highlights of the Spring Budget:
National insurance
- Chancellor Jeremy Hunt confirmed that the national insurance contribution rate will be cut from 10 percent to 8 percent of pay from April.
- This comes on top of a 2p cut in the autumn statement in November, which reduced the rate from 12 percent to 10 percent.
- It is estimated that the 2p cut to national insurance would be worth about £450 a year for someone on a £35,000 full-time salary.
Growth
- Mr Hunt says the economy is expected to grow by 0.8 percent this year and 1.9 percent in 2025. That is slightly stronger than the 0.7 percent and 1.4 percent growth rate expected by the Office for Budget Responsibility at the time of the autumn statement in November.
- Growth is then forecast to be 2 percent in 2026, before dipping to 1.8 percent and 1.7 percent in 2027 and 2028.
Inflation
- Inflation is expected to fall below the Government’s 2 percent target in “just a few months’ time”, Mr Hunt says, down from 4 percent in January. “Nearly a whole year earlier than forecast in the autumn statement,” he added.
- The Bank of England’s long-term target is to keep inflation at a “low and stable” 2 percent.
- The figure is down sharply from a peak of 11.1 percent in October 2022, as food and energy prices have eased.
