Footfall at UK shops has declined for the sixth consecutive month, signalling concerns for the retail sector. According to the British Retail Consortium (BRC), total activity decreased by 0.7% in October, primarily due to reduced visits to shopping centres and retail parks.
BRC Chief Executive Helen Dickinson attributed this decline to apprehension surrounding the forthcoming Budget, in which Rachel Reeves must address a substantial deficit in the government’s finances. “With consumer confidence remaining weak ahead of the possibility of a tax-raising Budget, many households have stayed away from shopping centres and retail parks,” Dickinson stated. She further noted that retail locations have struggled to attract customers in recent years, affected by the high cost of living and poor consumer sentiment.
The UK retail sector has been experiencing significant job losses, with a 10% reduction in its workforce since 2015 and another 10% projected to occur over the next three years. The combination of low consumer spending, high taxes, and rising costs has pushed many businesses to a critical point.
Retailers are looking to the upcoming Budget for potential relief from business rates, a widely criticised tax within the sector. Reeves has pledged to reform the business rates system by introducing upper and lower tax bands for shops, based on a £500,000 valuation threshold, though the specific levy details remain undisclosed.
Dickinson emphasised the need for government action: “Now is the moment for government to deliver on their manifesto’s business rates commitment, exclude retail from the new business rates surtax and ensure a meaningful rates reduction for the industry.”
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