Retailers urge Healey for budget support as August footfall declines

British retailers have requested financial assistance from Chancellor John Healey following a further drop in August footfall, despite cooler weather conditions. Data released by the British Retail Consortium indicates that total shopping traffic in the United Kingdom decreased by 1.7 per cent year on year during the month. Although this represents a slower rate of decline compared to the 2.2 per cent drop recorded in July, the trade body emphasises that the figures highlight the urgent need for the Treasury to provide tax relief to high street businesses at the upcoming Budget.

High street locations experienced the most significant reduction in visitor numbers, with footfall falling by 3.1 per cent compared to the same period last year. In contrast, retail parks saw a modest increase, recording one per cent more visits than in August of the previous year. Regional performance varied considerably across England. London suffered the steepest decline, with footfall dropping by 4.9 per cent, while the east of the country recorded a gain of 1.9 per cent. Andy Sumpter, head of analytics at EMEA for Sensormatic, which produces the data for the BRC, attributed the slight improvement in August figures to the cooling temperatures. He noted that the extreme heat in July had previously discouraged in-person shopping and boosted e-commerce platforms.

Sumpter suggested that the marginally better footfall figures in August may alleviate some of the intense pressures facing retailers, including rising business rates and employment costs. However, he cautioned that the primary challenge remains converting this modest improvement into meaningful spending as the key trading season approaches. The BRC has called on the Chancellor to reverse increases to employer National Insurance Contributions implemented by his predecessor, Rachel Reeves. Other industry groups have also urged the government to reform business rates. Helen Dickinson, chief executive of the BRC, stated that retailers require lower costs rather than verbal assurances. She argued that government action on business rates and energy costs would help maintain lower prices, support investment, and sustain the jobs and communities underpinned by the retail sector.