Retail trade body seeks lower employment and property taxes as survey identifies affordability, youth unemployment and high streets among the public’s top Budget priorities.
Almost nine in ten UK adults want the Government to prioritise reducing the cost of living in its next Budget, according to an Opinium poll commissioned by the British Retail Consortium (BRC).
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The survey found that 89% of respondents supported action on living costs, while 83% wanted the Government to prioritise youth unemployment. A further 77% said improving high streets — Britain’s town-centre shopping areas — should be an important Budget priority.
The BRC is calling for lower employment and property tax costs for retailers, arguing that this would give businesses more scope to recruit staff, invest in stores and keep prices competitive. The survey measures public priorities rather than support for the trade body’s specific tax proposals.
BRC seeks employment and property tax relief
The BRC is proposing three changes: raising the threshold at which employers pay National Insurance contributions from £5,000 to £6,000; freezing the inflation-linked increase in business rates; and removing shops from the high-value business rates multiplier.
Employer National Insurance is a payroll tax paid by businesses. Business rates are taxes on commercial properties, including shops, calculated using a property’s assessed rental value and an applicable multiplier.
The proposals target two areas of retail operating costs: staffing and physical premises. The BRC argues that reducing these expenses would free up funds for recruitment, training, store improvements and technology.
Helen Dickinson, chief executive of the BRC, said the Budget should be an opportunity to address priorities shared by the public, retailers and the Government.
“The Budget should be a chance to deliver on those shared priorities,” she said.
Retail tax bill rises as jobs decline
The BRC estimates that the retail industry will pay £41 billion in business taxes in the 2026/27 financial year, up 20% over two years.
The sector lost 122,000 jobs over the same period, according to the trade body, which also reports that one in seven high street properties is vacant. These figures provide context for the BRC’s campaign for tax relief but do not establish that higher taxes caused the job losses or vacancies.
Retail directly employs 2.8 million people in the UK, according to the BRC. The organisation says the sector supports a further 2.7 million jobs across the wider economy.
The trade body argues that easing cost pressures would give retailers more capacity to invest in their businesses. The effect on recruitment, store spending and consumer prices would depend on how individual companies used any savings.
Youth unemployment and high streets
The survey found that 83% of respondents wanted the Government to prioritise youth unemployment. The BRC also points to nearly one million people aged 16 to 24 who are not in education, employment or training.
Retail offers entry-level jobs and opportunities to develop workplace skills. The BRC argues that reducing employment costs could help businesses expand opportunities for younger workers, although the figures do not establish how many of the jobs lost across the sector were held by young people.
High streets are another focus of the debate, with 77% of respondents saying they should be a Budget priority. The BRC links the future of these shopping areas to retailers’ ability to maintain stores and invest in their businesses.
Vacant premises can reduce the range of shops available to local communities, while viable retailers support local employment and economic activity. The BRC argues that giving businesses more capacity to invest could help strengthen high streets and support jobs.
Budget decisions could shape retail investment
The BRC’s three tax proposals remain requests to the Government, not confirmed Budget measures. Any changes adopted would affect retailers differently, depending on their staffing levels, property costs and investment plans.
For retailers, the outcome could influence decisions on recruitment, store operations and technology spending. For shoppers, any effect on prices would depend on how businesses responded to changes in their costs.
The survey identifies public concern about affordability, youth unemployment and high streets. It does not establish that respondents support the BRC’s preferred tax changes as the means of addressing those issues.
