Retailers need lower business costs to invest in people, places and prices, says BRC

The Chief Executive of the British Retail Consortium (BRC) has responded to the Spring Statement, highlighting the need for government to lower business costs so that retailers can reinvest in their employees, retail locations and prices.

"Retail has unparalleled reach across the country and stands ready to work with the Government to ‘spread’ and ‘unlock’ opportunity in every part of Britain. But to do so, the Government must get a grip on the cost of doing business so retailers can invest confidently in people, places, and prices," said BRC CEO Helen Dickinson.

"While household finances may improve later in the Parliament, the immediate risk is to jobs, especially in retail. At a time when job vacancies are falling and confidence is weak, the priority should be protecting employment and strengthening living standards.

"Instead, retailers face a cost-of-doing-business crisis. Employment costs rose by more than £5 billion last year, and poorly implemented reforms in the Employment Rights Act risk adding further cost and complexity at the worst possible moment. Reforms must raise standards without deterring hiring."

The BRC reported in February that, according to its research, 61% of retail CFOs (Chief Financial Officers) and finance directors plan to “reduce the number of hours and overtime” for staff or even cut jobs altogether, with the BRC estimating that the cost of employing a full-time entry-level worker has therefore risen by 10%.

Across sectors in the UK, unemployment is expected to peak in 2026, according to the Office for Budget Responsibility (OBR), which published the Spring Statement on 3 March, before gradually declining to around 4.1% by 2030.

The forecast, which provides an interim view of public finances, projected real GDP growth at 1.1% in 2026, slightly lower than the 1.4% projected in the November 2025 Budget. In 2027 and 2028, this is expected to increase to 1.6%.

It also predicted that nominal weekly wage growth will slow to roughly 3.5% in 2026. CPI inflation is projected to fall to about 2.3% in 2026 and then remain around 2% over the following four years.

The OBR also specifically highlighted the risks from the current volatility of geopolitical and energy markets, especially regarding the conflict in the Middle East and its potential impact on gas and oil prices.

Dickinson added: "Today’s figures underline the scale of the economic challenge: growth is fragile, unemployment has climbed to 5.2% and is expected to rise, and businesses are cutting back."

"The Chancellor spoke about boosting investment in communities. Our high streets are the backbone of local economies, yet business rates continue to undermine their viability. While Government has taken some steps to fix the current system, it is broken and must be overhauled entirely to reduce the burden on the high street once and for all."