The retail sectors initial joy about Labourʼs win has quickly turned sour (missing comma in compound sentence) The British Retail Consortium which represents major stores sent a strongly-worded letter to Rachel Reeves this week
A high-ranking retail boss shared that the pre-election mood was different: “Most chief-executives felt listened to before but now the line has gone dead“ His company joins 80 other well-known brands fighting against new budget plans
The main issue is Labourʼs decision to lower the National Insurance threshold from £9‚100 to £5000; this affects businesses with many part-time workers. Julian Dunkerton of Superdry expressed his frustration: “They missed targeting international companies who dont pay proper taxes and instead hit those following rules“
Major chains face significant financial pressure:
- Tesco expects a £1bn National Insurance increase
- M&S projects £120m in combined new costs
- Sainsburyʼs forecasts £140m yearly additional expenses
The Treasury defends its choices pointing to a £22bn budget gap left by previous leadership – but retail leaders are losing patience. Lord Rose of Asda stated earlier this month: “Every retailer you speak to will say bloody hell this is hard for us“
Business-rates relief changes coming in 2026 dont satisfy store owners needs (missing apostrophe) A retail veteran explained that they expected more balance between costs and support. Government officials try to maintain dialogue but the retail sectors initial optimism is fading fast