Autumn Budget 2025: Rates reform positive step for UK retail, but a fair balance needs striking
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, said: “Levelling the playing field for UK retail seems to be a key theme in today’s budget. Rates reform is a positive step for the high street retailers, but the system still needs to strike a fair balance so larger operators and online businesses aren’t disproportionately burdened.
“In addition, the chancellor has closed the custom duty relief that allows small packages worth less than £135, into the UK without being charged import duties. This move could curb the flow of cheap goods flooding the market, but some care is required to ensure this doesn’t create friction at the border.
“The biggest blow is the 8.5% rise in national minimum wage which will acutely hit retailers, applying more pressure to wage costs, which could ultimately trigger staff cuts as operators strive to balance the books.”