The British Retail Consortium (BRC) said businesses were already absorbing higher energy and shipping bills
UK retailers are urging the Government to cut costs amid fears of soaring shop prices due to the Iran war.
The British Retail Consortium (BRC) said businesses were already absorbing higher energy and shipping bills and warned these will filter through to what shoppers pay at the tills in the coming months.
The group, which represents over 200 major retailers, has now has called on the Government to help by easing pressure from higher National Insurance, packaging levies, new regulations, and business energy charges.
It added that businesses have already been hit by £6.5billion in extra costs. A survey for the BRC found 73% of people expect the Middle East conflict to raise the price of products other than food.
A further 81% are worried about energy bills, 76% about petrol and diesel, and 68% about tax increases.
Separately, the Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, has warned food inflation could reach 9% by the end of 2026. Businesses have also told the Bank of England that UK food inflation could reach 7%.
BRC chief executive Helen Dickinson said: “The Middle East conflict is driving up costs across the supply chain and families are right to be concerned.
“But not every pressure bearing down on retailers comes from the Gulf. Higher national insurance, packaging levies, new regulations, and business energy charges are all domestic policy decisions, made in Westminster, and they can be addressed there.
“Such action by government would help retailers to keep prices affordable for households.
“Other governments are already acting. Germany has reduced electricity costs for businesses by moving levies off bills and EU leaders are actively discussing similar responses to this crisis.
“The UK should be moving in the same direction, not treating global instability as cover for inaction on costs of its own making.
“Retailers are working hard to hold prices down, but they cannot do it alone.
“Every cost government chooses not to address is a cost that will find its way into someone’s shopping basket. That is a political choice, and it is one ministers still have time to change – but the window to act is closing.”
Rachel Reeves held a meeting with Tesco, Sainsbury’s and other major supermarkets last month to discuss the impact of the Iran war on shoppers.
In an update last week, the Chancellor announced plans to suspend tariffs on selected food and drink to help people save money in the supermarkets.
A Government spokesperson said: “We are acting to protect people from any potential increases in food prices. We have already suspended select food tariffs and continue to work closely with the sector to keep households bills down.”
