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The British Retail Consortium (BRC) has called on ministers to reduce domestic policy costs to help businesses absorb rising energy and shipping expenses, as it revealed four in five people fear that the conflict in the Middle East will increase food prices.
According to BRC research, which was conducted by Opinium, 80% of the public expect the crisis to impact grocery costs, while 73% anticipate price rises for other goods.
In addition, retailers claim to have absorbed £6.5bn in employment costs and £1.6bn from packaging taxes over the last two years.
The industry body met with chancellor Rachel Reeves in April to request the removal of non-commodity energy costs from business electricity bills, as well as requested a delay to the Nutrient Profiling Model and a review of the triple packaging levy to ease financial pressure.
The BRC noted that Germany has already moved renewable energy levies off business bills to support its domestic industry.
Helen Dickinson, chief executive of the BRC, said: “The Middle East conflict is driving up costs across the supply chain and families are right to be concerned. But not every pressure bearing down on retailers comes from the Gulf.
“Higher national insurance, packaging levies, new regulations, and business energy charges are all domestic policy decisions, made in Westminster, and they can be addressed there. Such action by the government would help retailers to keep prices affordable for households.”
She added: “Every cost the government chooses not to address is a cost that will find its way into someone’s shopping basket. That is a political choice, and one minister still has time to change – but the window to act is closing.”
