Trade bodies voice fears over rising retail costs after Budget and Spring Statement
BOSSES at the Scottish Retail Consortium (SRC) are warning of challenging times ahead after its latest disappointing sales and footfall figures, while the Fed has expressed its disappointment at Chancellor Rachel Reeves’ Spring Statement.
SRC director David Lonsdale said: “With soaring council tax and water bills, and more than enough geo-political uncertainty, it remains to be seen how this impacts on shoppers’ propensity to spend.
“What isn’t in doubt is that the imposition of tax rises from UK, Scottish and local administrations will shackle customers and retailers with substantial extra costs.
“That will serve to make trading even tougher for Scotland’s retailers.”
Total sales north of the border for the four weeks to 1 March decreased by 0.4% compared with February 2024, when they had increased by 1.4%.
And total food sales in Scotland rose by just 0.7% compared with February last year, when they had risen by 3%.
The more muted set of results reflected the decline in shopper footfall, which faded during the same four weeks.
The SRC-Sensormatic footfall monitor shows it decreased by 0.3% year on year, down from a 1% rise in January.
Sensormatic Solutions retail consultant Andy Sumpter said: “With Easter falling late and well into April this year, this will undoubtedly put added pressure on retailers.”
Meanwhile, the Fed said that Chancellor Rachel Reeves’ Spring Statement had failed to address the concerns of independent retailers, who were disappointed that there was no significant change to major tax plans announced in the October Budget.
The Fed national president Mo Razzaq said: “The Fed is greatly concerned about impending higher costs from increases in employer national insurance contributions and above-inflation increases in the National Living Wage due in the coming days when the new financial year starts in April.
“Higher government costs come at a time when the overall economic outlook looks challenging, with growth under-performing, inflation ticking up and government spending being taken away from the economy.
“Our members are key to the government’s growth agenda, which is the right goal, but this can only be achieved if we are able to afford to employ staff and help them learn and develop.”
