Britain's retail sector called on the government to help with soaring costs as a result of the Iran war on Wednesday, warning that without support it will be harder to keep a lid on rising prices for consumers.
The British Retail Consortium (BRC) said the conflict was pushing up energy, production, shipping and distribution costs, compounding existing pressures from higher employer taxes, rising wages and new packaging levies.
Over the past two years, retailers have absorbed £6.5 billion in additional employment costs from rising employer NICs and the National Living Wage, alongside a new packaging tax (EPR) costing £1.6 billion, the trade body noted.
The BRC also flagged further regulatory burdens, including guaranteed hours provisions under new employment law and the proposed reformulation of thousands of food lines.
It wants the UK government to follow Germany and reduce electricity costs for businesses by moving levies off bills.
It also wants the government to delay the proposed food reformulation and review packaging levies.
The BRC said polling by Opinium it commissioned showed four in five people fear the Iran war will push up food prices.
“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,” Helen Dickinson, BRC chief executive, said.
“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.”