What kind of impact do you feel the new 2018 UK Budget will have on your retail business? 62% of respondents anticipate a negative impact on their retail business.

November 9, 2018
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Retailers React - Autumn Budget

Every year, the budget impacts every part of the economy. Due to the above average number of employees and reliance on wider economic confidence, retail is especially affected by changes made in the Autumn Budget, some of which include:

Despite rate changes positively impacting 90% of independent stores, retailers have reported that concerns around wages and taxation trump the benefits of lower business rates. Out of the responses we got, 62% of retailers are concerned that the new budget will have a negative impact on them and their stores.

Some of the worries they have include the increase in the prices of supplies, utilities, and the most popular expected impact, National Minimum Wage. Furthermore, despite the cut in Business Rates, some retailers aren’t expecting any impact.

How may the Autumn Budget impact your business?

11%

Positive Impact

62%

Negative Impact

27%

No Impact


Person

‘Minimum wage increase, utility bills will go up, price increases for sales means more and more people shop at supermarkets. No real benefits for small shops.’

Person

‘It is making people shop less, but more often. Thus making it less important to do a supermarket shop.’

Person

‘Prices will go up margins will be cut and wages continue to rise, we don’t pay any business rates, so our profits will go down.’

Person

‘Business rates going down.’

Person

‘The increase in minimum wage will really hit home on top of all the other expenses, Business Rates, Insurance, Pension contributions, Waste disposal, Security, Electric etc.’

Person

‘There is not much change other than the tobacco prices this time the problems will be in April when the minimum living wage goes up.’

Person

‘Another rise in minimum wage means we cannot afford to replace a member of staff who left recently’

 

Although 62% of retailers said that they’re anticipating a negative impact by the changes in the Autumn Budget, 38% said that they are expecting no or positive impact on their business. The changes made in the budget will happen. The questions that retailers are left with is as to how they will react, and adapt to drive their businesses forward.

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