Retail leaders representing more than 60 of Britain’s biggest chains have written to Chancellor Rachel Reeves, urging urgent action ahead of the Autumn Budget.
The letter, coordinated by the British Retail Consortium (BRC), highlights mounting financial pressures on the sector and calls for measures to protect prices, investment and jobs.
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Rising costs threaten price stability
Retailers say government policies implemented this year have added around £7 billion in new costs.
These stem from higher employer National Insurance contributions, increased labour costs—including a rise in the national living wage—and a new packaging levy.
The BRC warns that food price inflation, which has already climbed, could reach 6 per cent by the end of the year, increasing pressure on household budgets.
Calling for business rate reform to support high street
The letter urges the government to ensure that no shop pays more in taxes following reforms and to introduce significant reductions in business rates, especially for retail, hospitality and leisure sectors.
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By GlobalDataRetail executives warn that planned increases in business rates for large stores, set to begin in April 2026, could further inflate prices and threaten investment in physical stores.
Impact on jobs and future viability
The BRC notes that current cost pressures are already leading to job cuts and cautious hiring decisions.
A Reuters report estimates that up to 160,000 part-time retail roles could vanish within three years due to increased employer taxes and regulation.
Recent closures by chains such as Iceland, Poundland and New Look underscore the sector’s fragile condition.
key challenges facing UK retailers ahead of the budget
1. escalating tax and cost burdens
Retailers face a convergence of rising costs—from employer NICs and wages to packaging levies—totaling about £7 billion this year alone. These burdens are being passed on to consumers and squeezing margins.
2. business rates reform needed now
With heavy increases looming for larger stores, retailers are urging the government to back reforms that relieve the pressure on the high street. They insist any changes should not result in higher costs for shops.
3. employment and investment at risk
Mounting expenses and policy-related uncertainty are prompting job cuts and slowing investment. The potential loss of 160,000 part-time roles highlights how deeply the sector could be affected.
Retailers stress that stable pricing, continued investment and sustainable jobs must be central to the Autumn Budget. Without these priorities, they warn, both the retail sector and household living standards are likely to suffer.
