The British Independent Retailers Association has said that recent figures from the BRC-Nielsen Shop Price Index show that the government need to do more to reduce costs for businesses.
BIRA said that although shop price annual inflation had decelerated further to 6.9% in August, down from 7.6% in July, food inflation was still in double digits.
It was also reported that non-food inflation remained unchanged at 4.7% in August, this is below the three-month average rate of 5%. Inflation is at its lowest since December 2022.
Food inflation decelerated to 11.5% in August, down from 13.1% in July. Inflation is at its lowest since September 2022.
Andrew Goodacre, ceo, BIRA, commented: “While inflation has fallen again and this is very welcome, food inflation is still in double digits and that is worrying as it means less money being spent on discretionary items.
“A recent report by the Retail Sector Council showed that a 10% rise in the cost of essential reduces discretionary expenditure by 72%. This shows how difficult it is for the thousands of non-food independent retailers throughout the UK, compounded by a poor summer. This also means that the government must do all it can to reduce cost burdens which is why we want to see the current retail discount for business rates made permanent at 75%.”
BIRA is actively pursuing a comprehensive reform of business rates in the UK to alleviate the burden on smaller enterprises. It has been engaging in discussions with members of Parliament, the Department of Business and Trade, and the Treasury to champion the cause of making the 75% discount a permanent feature.
