Jeremy Hunt presented his Spring Budget this week, which received a mixed response from the retail industry. Hunt highlighted the government's success in reducing inflation from 11 percent to 4 percent, surpassing their target. The Office for Budget Responsibility now predicts inflation to drop below the 2 percent mark earlier than expected.
Efforts to combat inflation included higher interest rates and a period of slower growth. Hunt announced further measures in the Spring Budget to alleviate cost-of-living pressures. The economy saw growth, with GDP exceeding expectations, and the UK outpacing major European economies in growth rate.
The British Retail Consortium criticized Hunt for not supporting a net-zero, digitally transformed future for retail. The decision to raise business rates was met with disapproval, with concerns raised about hindering growth and investment.
Retail Northern Ireland welcomed investments in town development and the extension of the Recovery Loan Scheme. The Federation of Small Businesses appreciated certain budget changes but called for more support for small firms facing economic challenges.
The British Independent Retailers Association expressed concerns about the planned increase in business rates and emphasized the need for initiatives to drive economic growth and employment.
The absence of a decision on the 'Tourist Tax' was noted, despite calls from business leaders to reinstate tax-free shopping. The impact of the tax on small British businesses and the economy was highlighted, with concerns raised about the decline in international spending.
Overall, the Spring Budget evoked varied responses from industry stakeholders, with calls for more support for growth, investment, and economic recovery.
