The British Retail Consortium (BRC) has put further pressure on the government to boost the UK’s retail industry, which is expected to endure a challenging 2012.
Data published last week by the Office for National Statistics revealed a 0.6 per cent retail sales rise in December, in the midst of an intense price war between retail chains. However, the BRC believes shoppers are likely to once again rein in their spending over the coming months.
“Underlying factors including low consumer confidence and falls in real disposable income mean shoppers remain reluctant to spend,” said BRC public affairs director Jane Bevis. “The danger is that the eye-watering business rates rise of 5.6 per cent, due to come into effect in April, will push more high street businesses over the edge.”
Ms Bevis pointed out that retailers had responded to the financial pressures facing consumers, and insisted the government “must do more” to ensure it does not impose an excessive burden on the industry.
The most recent BRC-Nielsen Shop Price Index, published earlier this month, indicated that shop price inflation had tumbled to its lowest level for 16 months in December.
