Consumers cut spending ahead of Budget
Responding to the latest ONS Retail Sales Index figures, Harvir Dhillon, lead economist at the British Retail Consortium, said: “The ONS retail sales figures show overall sales growth in September driven by smaller retailers, while activity for larger businesses was more subdued. While spending held up better in some areas such as health and beauty, sales of clothing & footwear fell due to the unseasonably warm weather. With consumer confidence wobbling, the chancellor must use the Budget to give consumers and retailers the breathing space they need. The government has already ratcheted up retail’s tax bill by 20% in the last two years, putting yet more pressure on prices. Every extra penny in taxes and costs will be felt at the checkout. If the government is serious about revitalising high streets and driving economic growth, it should freeze the business rates multiplier rather than allow April’s 3.5% inflationary increase to go ahead.”