Retail sales growth slows to 1.3% as shoppers hold back spending ahead of Budget tax rises

From the Newshound archive · first published 13 October 2026.

British retail sales rose just 1.3% year-on-year in September, a steep drop from 2.3% in the same month last year and below the 12-month average, as consumers reined in spending ahead of anticipated tax and bill hikes. Food was the sole bright spot, with non-food sales edging up a meagre 0.3%. Mild autumn temperatures hit clothing and footwear particularly hard, making it one of the weakest-performing categories of the month.

Helen Dickinson, BRC chief executive, argued that the Chancellor cannot reconcile a pledge to ease cost-of-living pressures with 'piling more costs onto retailers'.

Health and beauty posted its best month of the year, with shoppers opting for modest treats rather than major purchases.

Retailers are warning that a Budget increase in business rates would drive up prices, choke investment on the high street and threaten employment in local communities.