Retailers suffer as shoppers cut their spending

Jobs at risk amid tax and wage increases

- By Jonathan Walker Whitehall Editor

SHOPPERS cut back on non-essential spending last month, piling extra pressure on retailers hit by tax and wage rises, analysis has revealed.

British Retail Consortium figures show spending on non-food items in shops fell by 1.1% compared to the same period last year, although food sales were up 3.6%.

Helen Dickinson, CEO of the BRC said: “Consumers put the brakes on spending, with the slowest growth in 2025 so far.”

Shops are grappling with the £5billion in extra costs resulting from the increase in national insurance contributions imposed by the Government, which came into effect in April, as well as increases to the minimum wage.

They also face an additional £2billion from new packaging taxes coming into force in October.

Pressures