Responding to the latest Bank of England decision on interest rates, and the Quarterly Monetary Policy Report, Helen Dickinson, Chief Executive at the British Retail Consortium, said:
“Households will have to wait a little longer for mortgage costs to fall as the Bank of England confirmed that interest rates will remain at 4% once again. This reflects uncertainty that inflation is on track to fall to its target of 2%, as well as a weakening of the labour market.
“The MPC’s report once again warns that food inflation is expected to remain elevated, in no small part due to domestic factors including rising wage and employer NI costs and the introduction of a new packaging tax that ‘disproportionately affected supermarkets’. The IMF recently warned that the UK will have the highest inflation in the G7 next year. And with fierce competition and increasing costs leading to razor-thin margins for the industry, retailers’ ability to absorb further costs are extremely limited.
“This is why it is vital that the Chancellor excludes retail from the new business rates surtax at the upcoming Budget or risk seeing food inflation stay higher longer. By protecting retailers from further costs, the Chancellor can help protect jobs, keep prices in check, and support investment in our high streets and town centres.”
