Bringing forward RPI to CPI indexation switch for business rates 'a timely boost' to retail sector - EY
1 min read
Julie Carlyle, EY’s retail leader, comments on the implications of today’s Budget announcement on the retail industry:
“Bringing forward the RPI to CPI indexation switch for business rates will be a timely boost to the retail sector. It is estimated to save retailers over £200m during the next two years. At a time when shoppers’ disposable income is being squeezed, this is welcome news.
“The confirmation of the increase to the National Living Wage (NLW) puts further pressure on the margin vice that the retail industry faces. However, for some retailers there may be a slight counter-balance as it will also increase the disposable income of some consumers that often spend a high proportion of what they earn.
“The abolition of stamp duty for some first-time buyers could give an uplift to household goods sales. However, the boost given to pubs and the travel sector could also take consumer spend away from the retail sector and further drive the trend towards hospitality and leisure spend.”
