Retailers warn of further price hikes and job cuts amid fears of Autumn tax raid

Retailers warn of further price rises and job cuts if Chancellor Rachel Reeves hikes taxes in her Autumn Budget. Two-thirds of bosses expect to raise prices, citing taxes and regulation as their main concern. The British Retail Consortium warns that the Chancellor will "fan the flames of inflation" and risk job losses if she launches another tax raid.

Retailers across the UK are bracing for further price rises and potential job cuts if Chancellor Rachel Reeves announces tax hikes in her upcoming Autumn Budget. According to a survey by the British Retail Consortium (BRC), two-thirds of retailers expect to raise prices, with taxes and regulation being their primary concerns [1].

The BRC has warned that an additional tax raid by the Chancellor could "fan the flames of inflation" and risk job losses in the retail sector. This comes at a time when retailers are already grappling with the effects of tariffs and higher production costs. The BRC's survey highlights the significant impact that increased taxes could have on retailers' profitability and their ability to create jobs.

Chancellor Reeves is expected to announce her Autumn Budget on October 20, 2025. The BRC has urged the Chancellor to consider the potential consequences of her proposed tax increases on the retail industry. The organization has called for a more balanced approach that takes into account the challenges faced by retailers and the broader economy.

The retail sector has been under significant pressure in recent months due to a combination of factors, including the ongoing trade war, higher production costs, and the COVID-19 pandemic. Retailers have already been forced to absorb increased costs and pass them on to consumers, leading to price hikes in various sectors. The BRC's warning underscores the need for a careful and considered approach to taxation that takes into account the unique challenges faced by the retail industry.

In addition to the potential impact on prices, retailers also expressed concern about the potential for job losses. The BRC's survey found that a significant number of retailers expect to cut jobs if taxes are increased. This could have a knock-on effect on the broader economy, as retail is a major employer in the UK.

The BRC's warning comes as retailers continue to navigate a complex and uncertain economic landscape. The ongoing trade war, higher production costs, and the potential for further tax increases all pose significant challenges for the retail sector. Retailers will be closely watching the Chancellor's Autumn Budget to see how her proposed tax changes will impact their businesses and the broader economy.

References:
[1] https://www.usatoday.com/story/money/retail/2025/05/19/tariff-price-hikes-summer-clothing/83722706007/