United Kingdom retailers say that budget tax increases reach the standard of living

The biggest retailers in Great Britain have written for the Minister of Finance, Rachel Reeves, to say that more tax increases in their next budget could undermine the government's demonstration to improve the standard of living.

The letter, published on Thursday, was coordinated by the British Retail Consortium Agency and signed by 60 retail bosses, including those of John Lewis, Tesco, Sainsbury's, Asda, Morrisons, Aldi, Lidl, JD Sports, Boots, Curries and Kingfisher.

“The work manifesto (2024) made a clear and welcome promise to offer good jobs and a higher standard of living, but if future policy decisions lead to increased prices and less jobs, then those commitments are at risk,” said the letter. He said the retail industry was determined to help the government deliver their growth ambitions.

“However, for this to be possible, the conditions of stable prices, continuous investment and sustainable employment must be in the heart of this year's budget.” Retailers are particularly concerned that reeves plans to reform commercial fees, or commercial property taxes, will increase the amount paid by those with larger stores.

Reeves must ensure “there is no store, big or small, pay more than it currently does,” said BRC CEO, Helen Dickinson.
Reeves is likely to increase taxes or reduce spending on your budget, probably in more than 20 billion pounds ($ 27 billion) according to analysts, to remain on their way to comply with their fiscal rules and avoid disturbing investors. Its first budget last year increased national employer insurance, or Social Security, contributions and reduced the threshold of when companies begin to pay. The minimum wage also rose.

When a new packaging tax is also taken into account, the retail industry says it has faced an increase of 7 billion pounds in annual costs, which increases prices. The BRC has already warned that food inflation will be as high as 6% by the end of the year, which increases home invoices as well as winter energy costs begin to activate.