UK retailers have urged the government to take immediate action to reduce business costs after the King’s Speech set out a broad legislative agenda covering trade, energy, policing and financial services.
The British Retail Consortium (BRC) warned that political delays could increase the price of food and essential goods later this year, as retailers face rising inflation, higher energy bills and growing operating costs.
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Responding to the government’s programme, BRC chief executive Helen Dickinson said households were facing “yet another cost of living squeeze” as geopolitical tensions in the Middle East pushed up inflation and prices.
She added that government decisions made “in the next few days and weeks” would shape the cost of food and essentials for the rest of the year.
The comments come as retailers across Europe continue to manage weaker consumer confidence, supply chain pressures and higher labour and energy costs.
UK retail groups are also closely watching trade negotiations with the European Union and new measures affecting high street crime and payments regulation.
Pressure on food prices
Retail leaders said reducing the “costs of doing business” would be essential if the government wants to improve living standards. The BRC warned of what it described as a “looming inflationary storm” linked to the Iran crisis and rising global energy costs.
Food inflation and grocery prices remain a major concern for consumers in the UK retail market. The industry body argued that delays in policy decisions could deepen economic pressure on households already struggling with higher living costs.
The King’s Speech included plans for a new European Partnership Bill aimed at improving UK-EU cooperation. Retailers welcomed proposals to reduce trade friction and simplify rules affecting food imports and exports.
Dickinson described closer EU ties as a “golden opportunity” to cut red tape for food businesses.
However, she said retailers, suppliers and manufacturers would need “practical support and guidance” to adapt to regulatory changes, including any future sanitary and phytosanitary agreement.
Retail analysts say smoother UK-EU trade could help reduce delays and costs in food supply chains, particularly for fresh produce and chilled goods moving between Britain and continental Europe.
Energy costs remain a concern
Retailers also criticised the government’s Energy Independence Bill for failing to address rising energy costs faced by businesses.
According to the BRC, non-commodity charges now account for as much as 65% of retailers’ energy bills. The organisation said reforms were needed to make network charges “more predictable” and improve the way renewable energy costs are recovered.
The retail sector has increasingly invested in solar power and energy efficiency projects as companies try to offset rising operating expenses and meet sustainability targets. The BRC said retailers with large property portfolios could help expand local renewable energy generation if policy support improves.
The debate reflects wider concerns across European retail and manufacturing sectors, where energy prices remain volatile following recent geopolitical tensions and continuing pressure on supply chains.
Crime and regulation in focus
Retail crime was another major issue highlighted by the industry. The BRC said theft, violence and organised criminal activity continue to place heavy financial pressure on retailers and their staff.
The organisation said there are more than 1,600 incidents of violence and abuse against retail workers every day in the UK. It welcomed proposals in the Police Reform Bill to increase neighbourhood policing and strengthen coordination between police forces.
Dickinson said visible policing on high streets and in shopping centres would help deter criminal activity. She also called for police to use new enforcement powers to ensure offenders are “caught and prosecuted”.
The King’s Speech also included measures covering small business protections and payments regulation. Retailers supported plans to tackle unfair payment practices while maintaining flexibility in supplier agreements.
The BRC further welcomed proposals to bring the UK Payment Systems Regulator under the Financial Conduct Authority, saying effective regulation of card fees and payment systems remains important for retail investment and economic growth.
