Retailers across the UK have raised concerns that further tax hikes in the forthcoming autumn budget could trigger fresh price increases and lead to job losses.
The British Retail Consortium (BRC) said the industry is already under strain and warned that additional fiscal measures could accelerate inflation and undermine high street resilience.
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Fallout from recent cost increases
A survey of finance directors at retail businesses representing more than 9,000 stores shows that 85% have already raised prices following last year’s increases in employer National Insurance contributions and the national living wage.
Two‑thirds of firms expect further retail price hikes over the next twelve months, even before any new tax rises are introduced.
The BRC estimates that the sector has absorbed about £7 billion in additional costs since Labour took office in 2024, with food inflation now at 4% and expected to climb to 6% by year‑end.
Tax pressure and risk to jobs
Retail finance leaders cited tax and regulation as their top concern, with 88% placing it among their three biggest issues—up sharply from 62% in January.
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By GlobalDataRecruitment freezes have been imposed in 42% of firms and 38% have already reduced staffing levels or cut back on store investment.
The BRC also warned that thousands of part‑time jobs are at risk, notably those traditionally held by students or seasonal workers, amid rising employer costs especially to flexible staffing.
Implications for household budgets and the economy
Retailers say that further tax increases may force prices higher at a time when consumer price inflation has already reached 3.6% in June, further hitting household budgets.
The BRC chief executive, Helen Dickinson, urged ministers to reconsider proposed tax changes—such as freezing income tax thresholds and raising business rates—to avoid exacerbating inflationary pressure and weakening support for local economies.
This briefing highlights growing warnings from retail leaders over policy choices ahead of the autumn budget and the potential consequences for shoppers and staff alike.
