Latest news with #British Retail Consortium
Telegraph
a day ago
- Business
- Telegraph
Reeves's £1.7bn tax raid risks gutting high streets, retailers warn
Rachel Reeves's plans for a £1.7bn tax raid risks gutting Britain's high street, retail bosses have warned. The British Retail Consortium (BRC), which represents 200 major retailers, said high street brands may have to shut shops if the Chancellor pushes ahead with plans to charge larger stores higher business rates. The Telegraph revealed last weekend that Ms Reeves is preparing to launch a fresh £1.7bn tax raid on businesses in the autumn. Under a proposed shake-up of business rates, department stores and supermarkets are expected to be hit with higher tax bills. Helen Dickinson, boss of the BRC, said the proposals threatened to slam the brakes on retailers' investment plans, saying: 'If the Government includes shops within its new higher rates threshold, then many retailers will be forced to rethink their investment plans. 'The closure of larger stores would harm the local communities they support, costing jobs and reducing footfall in the area they serve.' While the Treasury has yet to decide the new rates, City sources last weekend voiced concern that the Chancellor would set any surcharge on bigger properties at the maximum possible level. It comes at a time when retailers are already grappling with higher costs, after the increase to National Insurance contributions and the recent minimum wage rise. In evidence submitted to Angela Rayner's department, Marks & Spencer said higher business rate bills would 'accelerate the decline of the high street by encouraging retailers to close larger high street stores'. Ms Dickinson said: 'If Government wants to improve high streets and help local communities, they must ensure that no shop pays more under their new rates reforms.' She said the outlook for retailers was 'not all bright and sunny'. The comments came amid concern that shoppers are becoming more wary over spending amid rising economic pressures. Figures on Tuesday showed shopper confidence fell back in June, with grocery data firm IGD saying 'escalating global tension and economic pressures left shoppers feeling uncertain in the year ahead'. It follows a period where sales ticked higher across the high street. Figures from the BRC revealed retail sales were up 3.1pc in the five weeks to July 5 compared to the prior year. The BRC said this was helped by increased sales of electric fans as the country was struck by heatwaves. Food sales were also up in the period, rising 4.1pc on last year, although this was partly driven by food cost increases. A Treasury spokesman said: 'To deliver our manifesto pledge and provide certainty and support to the high street we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year. 'Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates, supporting some of Britain's most loved high street chains to continue to create jobs and grow the economy.'
Yahoo
6 days ago
- Business
- Yahoo
June heat and thunderstorms spell tough month for high street
Shoppers stayed away from their local stores in June due to extreme weather that had them avoiding high temperatures and severe thunderstorms, figures show. Total UK footfall fell by 1.8% year-on-year in June, a dip from May's 1.7% decline, according to British Retail Consortium (BRC)-Sensormatic data. The high street was particularly affected by the uncomfortable weather, suffering a 3% drop in shopper numbers on last June. Even retail park and shopping centre footfall decreased, by 1.1% and 1.6% respectively. Footfall decreased year-on-year across all nations, down 1.4% in England, 3% in Scotland, 3.3% in Wales, and the largest decrease of 5.2% in Northern Ireland. However, there were more encouraging signs in some parts of the UK, with Manchester and Birmingham recording positive footfall for the third consecutive month due to popular new shops opening and major concerts drawing in crowds. BRC chief executive Helen Dickinson said: 'Extreme weather meant shoppers stayed away from their local stores last month, leading to a decline in footfall across all three key retail locations. 'High streets were particularly affected as extreme heat was followed by severe thunderstorms, discouraging visits.' Ms Dickinson added: 'Subdued consumer sentiment means shoppers remain cautious, making it increasingly difficult for retailers to generate strong footfall into their stores. 'The Government formed a year ago promising to reinvigorate our high streets. However, footfall remains negative, with retailers struggling to invest more in local stores due to the rising costs from the last Budget. This is compounded by an outdated, broken business rates system in urgent need of reform. 'While we welcome Government's plans to reform rates, it is essential that the changes leave no shop paying more. In doing so, the Government can ease the pressure on high streets, enabling greater investment in our towns and cities, something local communities desperately need.' Andy Sumpter, retail consultant for Sensormatic, said: 'June delivered heatwaves, storms, and what could be the hottest June on record, but even the sunshine wasn't enough to spark a retail revival. 'One year on from the general election, with footfall still in the red, it appears that consumer confidence has yet to find its feet. 'That said, the rate of decline is easing, and with summer now in full swing, retailers have an opportunity to turn seasonal footfall into sustained momentum, especially those who can deliver value, experience, and convenience in equal measure.'
