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Retailers Warn: Red Tape, Energy Costs Threaten Shopper Prices
31 Mar
Summary
- Retail chains urge government action on red tape and energy costs.
- Middle East conflict drives up oil and gas prices, fueling inflation.
- Businesses face unsustainable 'policy costs' on energy bills.
Major UK retail chains have issued a stark warning: shoppers face further price hikes unless the government acts to reduce red tape and tackle soaring energy costs. The British Retail Consortium (BRC), representing prominent retailers, stated that the conflict in the Middle East has intensified inflation by pushing up oil and gas prices. This situation is being compounded by domestic factors, including new regulations and green levies on energy bills.
Retailers are particularly concerned about the Employment Rights Act, which they fear could hinder flexible hiring practices. Additionally, "policy costs" – charges funding government energy initiatives – now make up over half of businesses' energy bills, a situation described as unsustainable. Economists are raising concerns about the UK economy’s outlook, with a heightened risk of stagflation, characterized by stagnant growth and rising inflation.
Experts predict that the prolonged Middle East conflict will impact food prices in the coming months. The Institute of Grocery Distribution has warned that a sharp increase in energy bills could add approximately £150 annually to the average household's grocery expenses.
