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Over third of consumers to 'cut back spending' if taxes raised in Budget

Over third of consumers to 'cut back spending' if taxes raised in Budget
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About 42 per cent of consumers, increasing to 45 per cent for families, will cut back on Christmas spending this year if the government increases taxes in the Budget on 30 October, leading audit, tax and consulting firm RSM UK has said.

Jacqui Baker, partner and head of retail at RSM UK, stated that the findings, combined with the sharp fall in consumer confidence in September, are another reminder of just how fragile confidence is among both consumers and businesses.


"Retailers have already had to contend with lacklustre retail sales for most of the year, leading many to heavily discount their goods, so the prospect of consumers also holding back on spending during the crucial Golden Quarter will be devastating for many.

“Retailers are currently getting to grips with new sexual harassment prevention laws, set to come into force later this week, which will see them having to take proactive steps to protect staff in the workplace, as well as proposed changes under the Employment Rights Bill, including making statutory sick pay a day one right for employees.

"While these are welcome steps to ensure workers have sufficient safeguards in the workplace, this will place a greater cost and compliance burden on an already-stretched sector.

“As an industry that employs a vast number of staff, there are growing concerns over how the Budget will affect employment costs, which could disproportionately impact the sector. It’s becoming increasingly likely that an increase in employers’ National Insurance contributions is on the cards, plus another uplift in National Minimum Wage next year, both of which will sting retailers.

“With a number of growing costs, it’s clear the sector desperately needs support from the government. Retailers’ number one plea will be for the government to deliver on its pledge to overhaul the business rates system, including introducing a lower, more manageable, permanent multiplier. In addition, the reintroduction of tax-free shopping is crucial to bring back international tourists’ spending on retail goods. Without some form of drastic action, we’ll inevitably see more and more high street closures.”

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Indies: It’s criminal police and government turn blind eye to shoplifting

Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.

A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.

The ONS added that this figure was the highest since records began – in March 2003.

“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.

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