TWO-THIRDS of British retailers expect to raise prices further over the next year as April's employer tax increases continue to drive up costs, a survey of finance chiefs showed on Thursday (31).
Trade body the British Retail Consortium said its survey of finance leaders at retailers together representing over 9,000 stores found 85 per cent raised prices in their businesses after the government hiked employer National Insurance contributions and the national minimum wage.
It said 65 per cent predict further rises in the coming year.
Official data this month showed Britain's annual rate of consumer price inflation rose to its highest in over a year at 3.6 per cent in June, threatening to rise above the Bank of England's forecast for it to peak at around 3.7 per cent in September.
The BRC, which represents Britain's biggest retailers, predicts that food inflation will be up to six per cent by the end of the year, putting more pressure on household budgets in the run up to Christmas.
Its survey also found that 42 per cent of finance chiefs had frozen recruitment, while 38 per cent had reduced job numbers in-store. Some 38% had also reduced investment.
The retail industry directly accounts for nine per cent of employment in the United Kingdom.
Highlighting concerns about further potential tax rises, the BRC said 56 per cent of finance chiefs were "pessimistic" about trading conditions over the next 12 months, with just 11 per cent optimistic.
The trade body appealed to chancellor Rachel Reeves not to add further costs to retailers in her annual budget later this year.
"It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide," BRC CEO Helen Dickinson said.
The BRC survey took place between June 19 and July 11.
(Reuters)
