Economy

Too hot to shop! Burnham urged to tackle cost of doing business as High Street wilts in the heat

Andy Burnham has been urged to ‘reduce the cost of doing business’ as High Street sales wilt in the heat.

As the Prime Minister sets out his plan to save Britain’s ‘hollowed-out’ town centres with a clampdown on vape shops and bookmakers, retail bosses sounded the alarm over high taxes and red tape crippling business.

The comments came as figures from the British Retail Consortium (BRC) showed sales rose by just 1.3 per cent year-on-year in July – well below the 2.5 per cent uplift seen 12 months earlier.

While food sales were up 3.8 per cent, non-food sales fell 0.7 per cent, adding to evidence that it was ‘too hot to shop’ during the heatwave.

High Street sales have suffered in the heatwave as rising costs batter business

BRC chief executive Helen Dickinson said: ‘Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. 

‘Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.

‘If the Government wants to drive growth and keep inflation under control, it must reduce the cost of doing business by tackling the taxes and regulatory burdens that are holding back investment and putting upward pressure on prices. 

‘These include business rates, new packaging taxes, and the rising costs of employment.’

The BRC said food sales were given a boost by the football World Cup as shoppers splashed out ahead of big matches – including England’s games against Mexico, Norway and Argentina.

But Dickinson added that ‘non-food sales were hit by the decline in footfall as shoppers avoided the heat’.

Sarah Bradbury, chief executive of Institute of Grocery Distribution, said: ‘While shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions.’

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