news analysis


Industry responds to Chancellor’s Autumn Statement


Representatives from the British Retail Consortium, Hotpoint and Currys tell give Simon King their feedback following the Chancellor’s Autumn Statement


H


elen Dickinson, chief executive of the British Retail Consortium, said:


“Retailers and their customers have been sold out by the Chancellor’s Statement, which does not do enough to support shops, shoppers, and an industry that employs over three million people, and many more across its supply chains. “As we enter the Christmas period, this


Autumn Statement will serve only to renew inflationary pressures that ultimately harm households.” Ms Dickinson continued: “The Chancellor has


poured fuel on the fire spreading across our high streets with a tax hike on shops and other businesses. His decision to increase the business rates standard multiplier will cost retailers hundreds of millions every year. “Rather than introduce the meaningful


reforms that were promised in the Government’s 2019 manifesto, the Chancellor is now letting the tax spiral out of control, driving up costs just as retailers’ efforts to curb inflation have started to bear fruit.” Ms Dickinson said that this tax hike comes at a time when retail sales volumes have hit their lowest level in two years; yet business rates must be paid in full before a business sells a single product or service. “This flawed tax continues to wreak havoc on


our town and city centres, closing shops and costing jobs,” she said. “And with the Chancellor introducing the largest increase to National Living Wage on record, retailers are under ever increasing cost pressures, even as the Government withdraws its support. “The Chancellor has done little to prevent the decline of our town and city centres and his decision will see thousands of stores pushed into the red, jeopardising their commercial viability. This will lead to inevitable consequences for shops and jobs on high streets, right across the country.”


Winter 2023/24


Ms Dickinson reiterated that the country needs wholesale reform of the broken business rates system. “Retailers pay over £7 billion a year in business rates – over 22% of the total raised by the tax,” she said. “This must not continue; it is imperative that


we see parties commit to reforming the broken business rates system in their manifestos for the next General Election, and to lowering the disproportionate burden that this tax has on the retail industry.”


Spiralling household energy prices James Goldsmith, MD of Hotpoint (part of Whirlpool Corporation), pointed out that household energy prices will rise in January putting more financial pressure on households at the coldest time of year. The announcement from the energy


regulator Ofcom was released one day after the Chancellor Jeremy Hunt delivered his Autumn Statement. Ofgem said the typical annual household bill


would go up from £1,834 to £1,928, a rise of £94 or 5%. Mr Goldsmith said it’s important that households are supported during this challenging time, and he encourages consumers to follow a few easy steps to help reduce energy consumption with home appliances. “With energy costs forecast to rise in


Top left to bottom right: Helen Dickinson - BRC , Chancellor Jeremy Hunt, Alex Baldock - Currys , and James Goldsmith- Hotpoint


January 2024, families will need to adapt how they use their everyday appliances in order to save on costs. Small adjustments such as taking advantage of eco-conscious setting on appliances, for example, may take longer, however they do save a considerable amount of energy compared to shorter, more energy intensive settings.” Mr Goldsmith said that it’s also worth bearing in mind that some models are also more efficient than others – and when it comes to lifetime running costs, the higher the rating, the more money you can save. He added: “AMDEA reports the following


savings by energy-efficiency type, reflecting the average lifetime energy savings compared to the ‘C’ energy rating: B rated appliances can save £290 over their lifetime, while A+++ rated appliances can save as much as £5,430.”


Currys disappointed that Chancellor failed to address the unfairness of the business rates system Alex Baldock, chief executive of Currys, said it was deeply disappointing that the Chancellor failed to address the unfairness of our business rates system, and in doing so missed an opportunity to support retailers at a time of economic uncertainty. “Under the current system, retailers with


stores, which provide millions of high-value jobs, will be hit with an additional £480 million bill in April, while online-only businesses remain significantly under-taxed,” Mr Baldock said. “The rates system is meant to reflect rental


values, but with rental values falling it is unjustifiable for business rates to still be going up.” If the Government is serious about


supporting businesses of all sizes, Mr Baldock said that promoting growth and reducing costs for consumers, it must urgently address the UK’s outdated and unfair business rates system.”


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