Retailers trying to shield shoppers from price rises are “fighting with one hand tied behind their backs” thanks to the costs of doing businesses, the BRC has warned.
BRC CEO Helen Dickinson urged Chancellor John Healey to help consumers by pulling back from increasing business rates in Budget on 28 October.
The warning came as latest BRC-Sensormatic data showed retail footfall fell across the board year on year in September. Shopping centres took the worst hit, with a 3.5% decline, followed by high streets (–3%) and retail parks (–1.7%). Total retail footfall fell by 2.9% year on year.
Retailers are urging Healey not to introduce an additional ‘warehouse tax’ to help pay for a promised 20% business rates cut for pubs and lives music venues.
Read more: Do the numbers add up for Burnham’s business rates promises?
“As we enter the crucial final quarter, retailers will do all they can to attract shoppers with great value and choice,” said Dickinson.
“But until government acts to reduce the cost of doing business, retailers are fighting with one hand tied behind their backs.
“By pulling back from another increase in business rates, the Chancellor can use his first budget to unlock vital investment in our shops and high streets, help retailers keep prices down and provide jobs across the country.”
Tesco CEO Ken Murphy said on Thursday that a tax raid on warehouses – an idea Andy Burnham put forward on a number of occasions before taking the keys to No 10 in July – would be “fundamentally unfair” for retail.
He said retailers were already “paying four times more than their fair share of rates and I would urge the government for more equitable rates”.
Murphy also called for retailers to be exempted from a business rates increase implemented in April for high-value properties with a rateable value over £500k.
“We urge the government to exempt retailers from the [£500k] threshold,” Murphy said.
Andy Sumpter, Sensormatic head of consulting & analytics for EMEA, said: “September marks another challenging month for UK retail destinations, with footfall remaining firmly in negative territory and declining across all major retail location types.
“While temperatures remained above seasonal norms, retailers cannot attribute this month’s performance to the weather. Instead, consumers appear increasingly focused on broader economic concerns, including the continued impact of inflation, household spending pressures, fuel costs and uncertainty ahead of the autumn budget.”
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