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It has been cautioned to Rishi Sunak that his strategy towards Brexit bureaucracy and tax obligations may prolong the UK’s ongoing issue of high cost of living until 2024.
The largest retailers in Britain expressed concerns that their plans to reduce inflation in the upcoming year are at risk due to the persistent high costs of operating their businesses.
According to the British Retail Consortium (BRC), the difficulty with expensive post-Brexit paperwork could potentially lead to continued increases in retail prices.
The organization representing retailers also stated that the actions outlined by chancellor Jeremy Hunt during the autumn statement could potentially contribute to inflation.
The BRC’s gauge of inflation in shop prices decreased to 4.3 percent in November, compared to 5.2 percent in the previous month.
The organization clarified that the easing indicates a slower rate of increase for prices in stores and supermarkets.
The BRC stated that the additional expenses of adhering to post-Brexit regulations have made it challenging for companies to maintain low prices.
“According to Helen Dickinson, the chief executive of the BRC, retailers are dedicated to providing an affordable Christmas for their customers.”
She stated that in 2024, they will encounter additional challenges such as higher business rates imposed by the government and the undisclosed expenses of adhering to new regulations.
Criticism has been directed at Rishi Sunak and Jeremy Hunt for the heavy burden of taxes.
Ms Dickinson said: “Combining these with the biggest rise to the ‘national living wage’ on record will likely stall or even reverse progress made thus far on bringing down inflation, particularly in food.”
The BRC stated that despite providing some relief for smaller businesses, Mr. Hunt’s choice to maintain the scheduled rise in business rates starting in April would result in a loss of £400m for companies in the following year.
After Bank of England governor Andrew Bailey stated that the potential for growth within the UK economy is one of the worst he has witnessed in his lifetime.
The governor restated his caution that there would be no reduction in interest rates in the foreseeable future, stating that it was still too soon to declare victory over inflation.
According to Richard Hughes, chairman of the Office for Budgetary Responsibility (OBR), the proposed spending plans in Mr. Hunt’s autumn statement pose a significant fiscal risk due to potential major cuts in public spending.
On Tuesday, the head of the watchdog committee stated that it is challenging to determine the validity of the government’s budget plans. This is because the government has no plans for spending after March 2025.
Jeremy Hunt implemented tax reductions, however, he received backlash for the overall level of taxation and cuts to government spending in the future.
A representative from the Treasury stated: “Our efforts have led to the successful achievement of our goal to reduce inflation by half this year. However, we remain committed to reaching our ultimate target of 2 per cent.”
The Office for Budget Responsibility has verified that our strategies will lower inflation in the upcoming year, as well as stimulate growth and provide recognition for individuals’ efforts.
In other developments related to Brexit, David Cameron, the foreign secretary, is anticipated to attempt a meeting with Maros Sefcovic, the vice president of the EU Commission, while he travels to Brussels for a two-day summit.
Mr. Cameron will be visiting the EU’s capital for the first time since his significant Brexit referendum. He will attend a Nato meeting with other foreign ministers to talk about the ongoing conflict in Ukraine.
However, there are reports that Lord Cameron may bring up the matter of post-Brexit tariffs that are set to go into effect in January for the automobile industry when he meets with Mr Sefcovic this week.
The government led by Mr. Sunak is urging the EU Commission to postpone the implementation of expensive “rules of origin” that could harm the electric vehicle market. These rules were included in Boris Johnson’s trade deal and were originally planned to take effect in 2024.
Source: independent.co.uk
