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Stores fear they will be “hit” on the budget as nervous households rein in spending.
The High Street is bracing for a series of tough tax rises, including a rise in employer-paid National Insurance and business rates.
The increases, which Chancellor Rachel Reeves will detail in her budget on October 30, will add to a raft of new rights for workers who have piled even more regulations on businesses.
To make matters worse, there are signs that buyers are holding back as concerns about what Reeves has planned dent confidence.
Retail sales rose just 0.3 per cent in September, according to the Office for National Statistics, after rising a much stronger 1 per cent in August. The fall came as Reeves prepares a budget that could include more than £40bn in tax rises as he struggles to pay for Labour’s spending promises.
Concern: The High Street is bracing for a series of tough tax rises, including a rise in employer-paid national insurance and business rates.
Kris Hamer, of the British Retail Consortium, said: “Retailers are nervously awaiting the budget to see if they will be hit by higher costs, particularly subsequent changes to employers’ national insurance contributions, as well as the inflationary rise in wages. commercial rates”.
“These changes would add more pressure to an industry that already pays far more than its fair share in business taxes.”
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said “the Government’s dovish propaganda” has hit confidence.
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