The BRC has issued a new call to Rachel Reeves to ease the tax burden on shops after footfall fell in all retail locations in September.
Footfall in high streets, retail parks and shopping centres was down by 1.8% year on year, amid consumers worries the Chancellor will raise taxes in her autumn budget, the BRC said.
High streets were worst impacted, according to BRC-Sensormatic data, with footfall down 2.5% as heavy rainfall also took its toll.
Shopping centres were next, with footfall dropping by 2%, followed by retail parks which suffered a 0.8% decline.
Retail footfall was down across all UK nations – by 0.5% in Northern Ireland, 1.8% in England, 2.3% in Scotland, and 2.5% in Wales.
“Low consumer confidence ahead of a potential tax-rising budget kept many shoppers away from retail locations in September,” said BRC CEO Helen Dickinson.
“Tube strikes in London, heavy rainfall in the first half of September and Storm Amy towards the end of the month exacerbated the decline.
“While August saw stronger growth in high street footfall, September saw high streets back as the weakest performer across all retail locations.
“Retailers’ ability to invest in local communities and high streets has been hampered by last year’s budget, which added £5bn in employment costs to the industry, in addition to a new packaging tax,” Dickinson added.
“For retailers to invest in shopping destinations that will entice shoppers back, the government-imposed cost burdens holding back that investment must be lifted.
“The upcoming budget is the moment for the Chancellor to do just that, deliver the Labour manifesto commitment of a meaningful reduction in business rates for the industry and ensure no shop pays more in the process.”
Sensormatic retail consultant Andy Sumpter said: “The month began with a modest uplift, driven by back-to-school shopping, but momentum was quickly disrupted. London’s Tube strikes mid-month and Storm Amy at the end brought widespread disruption, impacting shopper activity nationwide.
“These events compounded an already cautious consumer mood, with many still navigating cost pressures and economic uncertainty.
“Retailers will now be hoping that September’s slowdown was less a sign of retreat, and more a pause for thought.
“As we move into quarter four, the opportunity lies in converting that caution into confidence – especially for those who can deliver value, experience, and convenience in equal measure.”
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