Retailers warn Reeves tax increases would raise prices

The British Retail Consortium (BRC) said two thirds of finance directors predicted there would be further price rises over the next year, even before any tax rises in the chancellor’s autumn Budget. 

A survey of retail industry finance directors by the BRC found that 85% had raised prices in response to measures brought in since Labour came to power in 2024, and 56% of finance directors are pessimistic about the year ahead with only 11% optimistic.

BRC chief executive Helen Dickinson said another round of tax increases by Reeves would force retailers to increase prices further. 

“Retail was squarely in the firing line of the last Budget, with the industry hit by £7bn in new costs and taxes.” she said. ”Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable.”

The BRC said jobs were also at risk following a recruitment freeze by 42% of respondents, and 38% said they had cut staff numbers. Up to 88% of finance directors said the “tax and regulatory burden” was their top concern.

The BRC said this was up over 20 percentage points from January, when 62% of finance directors had it in their top three concerns. 

Dickinson said: “It is up to the chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide.”