Budget hammer blow to shops: Retail sales slumped 0.7% last month as jittery Brits feared huge Labour tax raid – with business warning of job cuts and price rises to come_Nhy
British shops saw sales slump last month as jittery Brits braced for the massive Budget tax raid.
Retail volumes were down by 0.7 per cent, far more than expected, as consumers waited for Chancellor Rachel Reeves to drop the hammer.
In a fresh blow, the Office for National Statistics has also revised down the 0.3 per cent growth estimated for September to just 0.1 per cent.
The grim figures were released as retailers warn of job cuts and price hikes to come after Labour hiked employer national insurance contributions.
The measure is set to raise £25billion for the Treasury, helping to fund a spending splurge on public sector wages and services – but economists have warned it will also hold down growth and fuel inflation.
British shops saw sales slump last month as jittery Brits braced for the massive Budget tax raid
Retail volumes were down by 0.7 per cent, far more than expected, as consumers waited for Chancellor Rachel Reeves to drop the hammer
ONS senior statistician Hannah Finselbach said clothing stores were particularly badly hit
The fall in retail sales volumes in October was heavier than expected, with economists predicting a 0.3 per cent decline.
ONS senior statistician Hannah Finselbach said: ‘Retail sales fell back in October following three months of growth.
‘The fall was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget.
‘However, when we look at the wider trend, retail sales are increasing across the three month and annual periods, although they remain below pre-pandemic levels.’
