Tax rises would force up prices for customers, retailers warn Reeves
Businesses issue urgent tax warning to Rachel Reeves
- Britain's biggest retailers have urged Rachel Reeves not to raise taxes in the upcoming autumn budget, warning it could lead to higher shop prices and negatively impact household incomes and the economy.
- The British Retail Consortium (BRC) reported that 56 per cent of retail finance chiefs are pessimistic about trading conditions, following store closures by major retailers due to the chancellor's previous national insurance hike for employers.
- The warning comes as the government faces increasing pressure to address a significant deficit in public finances, with expectations mounting that tax increases may be necessary.
- The BRC predicts food inflation could reach 6 per cent by the end of the year, and 85 per cent of chief financial officers have already raised prices, with many also freezing recruitment or reducing job numbers.
- An HM Treasury spokesperson stated the government is pro-business, focusing on economic growth to strengthen public finances, citing capped corporation tax and trade deals.