Sunak risks fuelling inflation with high taxes and Brexit red tape, retailers warn

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The UK's largest retailers have warned Rishi Sunak that his government risks prolonging the cost of living crisis by driving up the cost of doing business on the high street with Brexit red tape and higher taxes.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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28 Nov 2023

The British Retail Consortium (BRC) said a number of measures laid out by the chancellor, Jeremy Hunt, in last week’s autumn statement risked adding to inflation next year.

After soaring to a 41-year high last autumn, inflation has fallen back before this year’s pivotal Christmas shopping season. The BRC said its measure of annual shop price inflation eased for the sixth month in a row to 4.3% in November, down from 5.2% in October. The decline does not mean shop prices are going down, only that they are rising less rapidly.

However, the industry trade body warned that retailers were facing headwinds in 2024 from “government-imposed” measures – including tax increases and Brexit red tape – which risked fuelling inflation.

“Combining these with the biggest rise to the ‘national living wage’ on record will likely stall or even reverse