Tax rises in autumn would force our prices up, retailers tell Reeves
Rachel Reeves has been warned by Britain’s biggest retailers that tax rises in her autumn budget could trigger higher shop prices, hitting household incomes and the economy.With high street chains closing stores and cutting jobs, the British Retail Consortium (BRC) said two-thirds of finance directors predicted there would be further price increases over the next year, even before any rise in tax in the autumn budget.Iceland, Poundland and New Look were among major retailers to announce store closures in recent months, amid business warnings over the impact of tax rises in the chancellor’s first budget.A survey of retail industry finance directors by the BRC, which represents more than 9,000 stores that employ 300,000 workers, found that 85% had raised prices in response to measures brought in since Labour came to power in 2024.Helen Dickinson, chief executive of the BRC, said a fresh round of tax increases would force retailers to push up prices further and leave many households struggling to cope.
“Retail was squarely in the firing line of the last budget, with the industry hit by £7bn in new costs and taxes,” she said.“Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable.”The UK’s headline inflation rate jumped to 3.6% in June, according to official figures, while a BRC-NielsenIQ monitor of food price inflation increased to 4% this month.The BRC said its own forecasts showed that food inflation would accelerate to 6% by the end of the year.
Retailers suffered a squeeze in April from the government’s £25bn rise in employer national insurance contributions (NICs) and 6.7% increase in the “national living wage”, while global uncertainty and rising unemployment have encouraged households to increase their savings.Reeves is expected to seek ways to raise funds in the autumn to cover a shortfall in the public finances which some analysts estimate could be as large as £20bn.The chancellor is rumoured to be considering extending a freeze on income tax thresholds to close the spending gap, but businesses fear they could be in line for further tax rises.According to the BRC survey, 56% of finance directors are pessimistic about the year ahead, and only 11% were optimistic.
Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe industry lobby group said jobs were also at risk following a recruitment freeze by 42% of respondents.More than a third (38%) said they had cut staff numbers.As many as 88% said the “tax and regulatory burden” was their top concern.“This was up over 20 percentage points from January, when 62% of finance directors had it in their top three concerns,” the BRC said.“It is up to the chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide,” Dickinson added.
Rachel Roddy’s recipe for Sardinian crispbread lasagne | A kitchen in Rome
The process of making Sardinian pane carasau is similarly hypnotic to pitta: a disc of durum wheat dough is baked on a hot surface until it puffs up into an almost-ball. The reason for this puffing is the contrast between the rapidly drying surface of the dough and the evaporating water within the dough. The water turns into steam, causing the centre to balloon and the two layers to separate, creating a pocket and making the whole thing look a bit like an inflated whoopee cushion.In order to make pane carasau, which in Sardinia is a domestic, artisan and industrial art, the puffed-up dough is swiftly separated into two thin discs with a sharp knife, then the discs are returned – possibly folded in half or quarters – to the oven to dry and toast for a second time according to the maker’s taste. Fortunately for us, there are hundreds of makers and the whole point of pane carasau, also known as carta di musica (music paper bread), is that it is brilliantly transportable and enduring: it lasts and lasts, which is why it’s one of my favourite things to have in the cupboard
The rapid rise of Luckin coffee: is this the end of the Starbucks supremacy?
The Chinese chain has opened two outlets in New York City. Will its ‘coffee to go’ business model, apple fizzy americanos and coconut lattes see off its biggest rival?Name: Luckin.Age: Seven – it was founded in October 2017.Appearance: 20,000 locations and counting.Locations doing what? Serving coffee
How to transform leftover baked potato into a summery Italian feast | Waste not
I’m rolling these gnocchi out of yesterday’s leftover baked potato and feeling rather chuffed with myself, because when you’re able to cut out a step from a normally scratch-cook dish such as gnocchi, it makes life easier. Crisp up the leftover potato skins in a pan with sea salt to enjoy as a snack, or freeze them for making loaded potato skins (recipe coming next week).A great way to make extra-flavourful fluffy pillows of gnocchi is to make them with leftover baked potato. Baking the potatoes instead of boiling them reduces their moisture content, meaning less flour is required, which in turn results in a lighter, less pasty gnocchi. Leftover baked potato also saves about an hour of prep time
Melon salad and Georgian-style grilled vegetables: Alice Zaslavsky’s recipes for barbecue-friendly sides
Adjapsandal is one of my favourite Georgian go-tos, no matter the season. Its more traditional form is broody and stewy, designed to burble away on a winter stove a bit like ratatouille, but with more fresh herbs. In summer, while the barbecue’s on and veg dishes of this kind are va-va-voom, it makes sense to just chuck them on the barbie instead and perhaps team with a spicy shortcut adjika paste using a jar of roast peppers. And, second, a very adaptable carpaccio for any firm fruit in your fridge or fruit bowl: melons, stone fruit – heck, even pineapple! The key is to use a sharp knife and slice against the grain for the best mouthfeel, much as you might sashimi.Piquillo peppers work best here, if you can find them, but you can use the ones from the deli counter, too, though maybe add a splash more red-wine vinegar to balance the acidity, tasting as you go
Air fryer, slushie maker, food processor, two blenders … is my Ninja kitchen appliance habit out of control?
Almost unknown a decade ago, Ninja sold nearly $3bn worth of products last year – and a good chunk of them were to me. Are we getting value for money?I have a problem. It has spanned many years, cost me hundreds of pounds and earned the derision – and concern – of friends and family. Don’t worry: it isn’t anything sordid but it does give me an absurd number of ways to cook chicken or use up a bag of potatoes.My poison is Ninja appliances
One-pot wonders: the secret to campsite cooking | Kitchen aide
I am limited to one pan and a burner when I camp. What would chefs recommend making?Maxwell, by email Happy campers need supplies, and Ryan Cole, executive chef and co-owner of Salsify at The Roundhouse in Camps Bay, South Africa, doesn’t mess about. “We have three square boxes: one dedicated to dry goods, one to oil, salt, pepper and utensils, and the third to camping toiletries; we also have a dual compartment fridge-freezer.”Whatever your set-up, a considered mobile store-cupboard of spices, stock cubes, good oil, grains, pasta, tins of coconut milk and the like will really come into its own. Got tinned tomatoes? Make shakshuka for a campside breakfast
Pound on track for worst month in almost two years; ‘no evidence of malign activity’ behind UK airport disruption – as it happened
‘Shame on them’: Standard Chartered CEO decries banks that drop climate pledges
Next gets sales lift from sunny weather and M&S disruption
Rolls-Royce profits soar 50% on strong demand for jet engines
Shell profits down nearly a third after drop in gas prices
Co-op expands its ‘food on the go’ offering with 15 new bitesize stores