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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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Surge recorded in whole food sales

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According to a recent report from John Lewis Partnership released on Friday (17), supermarket Waitrose has reported that it’s back to basics for many in 2025 due to a growing awareness around ultra processed foods, with many turning away from low-fat, highly processed products in favour of less-processed, whole food ingredients.
Whole milk and full-fat Greek yogurt sales are up 11 per cent and 21 per cent compared to skimmed milk and Greek style yoghurt a year ago.
Block butter sales are up by +20 per cent as compared to dairy spreads while brown rice is seeing +7 per cent more sales as compared to white rice.
The report adds that sourdough bread sales are up by +20 per cent as compared to white bread while full fat Greek yoghurt recorded +21 per cent more sales than Greek style yoghurt.
Over the past 30 days, searches on Waitrose website whole food searches soared with ‘full fat milk’ and ‘full fat yoghurt’ skyrocketing 417 per cent and 233 per cent.
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His eye-opening, rigorously researched account of ultra-processed foods and their effect on our health turned many people towards cooking from scratch, with unprocessed or minimally processed ingredients.

Maddy Wilson, Director of Waitrose Own Brand comments, “There’s been a lot of bad press around so-called ‘healthy’ products which aren’t nutritious and don’t taste great, however the growing awareness of ultra processed food in our diets has seen many customers seeking the basics and embracing a much simpler approach to their diet.”

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About 683,400 cigarettes, 37.45kg of hand rolling tobacco, and 35 cigars were seized by the police from International Food Centre in Lincoln Road in Peterborough late last year. The closure order was served on the shop and flat above on Dec 31following an application to Huntingdon Magistrates' Court.

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Producers had called in July for a cut in the number of grapes harvested this year after sales fell more than 15 per cent in the first half of 2024. Full year shipments were down 9.2 per cent from 2023 at 271.4 million bottles, the Comite Champagne (Champagne Committee) said.

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