The British Retail Consortium has said that the economic picture for the UK remains 'fairly bleak', despite a somewhat optimistic set of forecasts outlined by Chancellor of the Exchequer, Philip Hammond.
In the annual Spring Statement on the state of the UK economy yesterday, Hammond said that economic indicators point to the government having "capacity to enable further increases in public spending and investment in the years ahead”.
On future macroeconomic prospects, he noted, "our best days lie ahead of us".
Economic Picture
Responding, Helen Dickinson OBE, the chief executive of the BRC, said "Despite the upward revision of forecasts announced by the Chancellor today, the economic picture remains fairly bleak, with the OBR expecting private consumption to make a lower contribution to growth this year."
Dickinson noted that this will "only add to the challenges" facing retailers at present.
"The industry is undergoing rapid structural change as technology revolutionises the way we shop and operating costs escalate, at the same time as inflation continues to outpace wage growth; eating into consumers’ spending power and keeping overall sales growth low."
Re-Focus Attention
She pointed to recent high-profile closures on the high street, saying that the government should "re-focus attention" on what is going on in retail in the UK at present.
Factors slated as of key importance for the BRC include clarity on business rate revaluations and the question of a proposed 'digital tax' on online players.
“The Government needs to look more widely than simply focussing on digital tax, instead looking across all elements of business taxation," said Dickinson.
Dickinson also addressed the question of a proposed 'plastics tax' saying, "We recognise that we need to do more to reduce plastic; it is what customers want and accords with our commitments to our new initiative Better Retail Better World.
"However, we need a comprehensive strategy which considers all materials and resources and sets out how the Government intends to shift to a circular economy where all resources are valued and reused when possible."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
