More than eight in ten UK shoppers are concerned about rising food prices (83 per cent) and inflation (82 per cent) ahead of today’s Budget, according to a new study.

Opinium polling of over 2,000 UK adults, commissioned by the British Retail Consortium (BRC), added to concerns following yesterday’s monthly Shop Price Monitor. It showed a 2.1 per cent rise in shop price inflation for October, the highest since February 2024.

BRC stressed that retailers are doing everything they can to absorb costs and keep prices as low as possible for customers, but rising taxes have made this all but impossible.

The retail industry is facing £41 billion in business taxes for 2026/27, a 20 per cent increase in just two years. Compared with other major economic sectors of the economy, retail, along with hospitality, has the highest effective tax rate, with nearly £3 paid in tax for every £4 of profit (72 per cent). This compares to the financial sector, where the effective tax rate is less than £2 tax for every £4 profit (41 per cent).

Retailers want Chancellor Healey to support families by finding ways to reduce business costs and balance them more fairly across the economy, said the BRC.

Without action, business rates will rise by 3.5 per cent in April 2027, in line with the September Consumer Price Index.

Helen Dickinson, chief executive of the BRC, said: “The message from the public is clear: the cost of living remains a top concern. Households, retailers and the Government share a common aim of easing pressure on family finances and fixing the youth employment crisis. The Budget must deliver on both.

“To support this, the Chancellor must address the barrage of costs and taxes currently raining down on the industry. Chief among these are business rates, which are set to rise by another £250m for retailers next April, and employer NICs, which are up by over £2 billion in the last two years. Every pound spent on taxes and regulation is a pound not spent on keeping prices low for consumers.

“Action on business rates and NICs would go a long way to helping retailers deliver even better value for households and more jobs for young people. A Budget for shops and shoppers is also a Budget for communities everywhere.”

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