FOOD inflation could stay above 5 per cent well into next year if the Government slaps large shops with new tax rises in the Budget, retail leaders have warned.
They said a proposed surtax on business properties with a rateable value of over £500,000, including supermarkets, would increase costs for about 4,000 major stores.
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That would force prices higher for shoppers.
British Retail Consortium boss Helen Dickinson blasted the move, saying it would “rob Peter to pay Paul” and pile pressure on struggling families.
It came as a BRC survey revealed 61 per cent of working adults are more worried about prices outpacing wages than tax rises and unemployment.
The latest Office for National Statistics figures put overall inflation at 3.8 per cent, almost double the Bank of England’s 2 per cent target.
Food and non-alcoholic beverages inflation rose to 5.1 per cent, the highest level since the cost-of-living crisis in 2022/23.
Last week, the Bank of England held off from an interest rate cut amid fears that rising food prices were putting upwards pressure on headline inflation.
Ms Dickinson said: “Removing all shops from the surtax can be done without any cost to the taxpayer, and would demonstrate the Chancellor’s commitment to bring down inflation.”
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BMW CASH UP
BMW’s UK car finance arm has earmarked £207million to address claims from the motor mis-selling scandal — up from £70million last year.
It is the latest to reveal the cost of the possible compensation to millions of drivers.
The Financial Conduct Authority is still consulting on a redress scheme for consumers.
Lenders hid info on commission paid to dealers from 2007 to 2020.
AIRPORT’S AID
LOCALS impacted by Gatwick’s upcoming expansion could get financial help.
It might see payments towards stamp duty, moving costs, and estate agent fees if homeowners sell up and leave.
If they are staying, Gatwick may pay for triple-glazing so they can deal with the noise.
The £2.2billion second runway plan, which got the green light yesterday, promises £1billion in annual economic benefits.
BODY’S TOTAL COLLAPSE
BEAUTY chain Bodycare is closing all 56 remaining stores this week after collapsing into administration, marking the end of its high-street presence.
The brand, which started as a Lancashire market stall in the 1970s, failed to secure a buyer due to rising costs and dwindling stock.
More than 440 staff will lose their jobs, with support pledged for redundancy claims.
Bodycare shut 62 stores earlier this month. Talks to sell the brand continue.
The closures are expected to be completed by Saturday.
