06 February 2025
A leading independent retail body has warned that retailers across Britain face troubled times ahead despite today's Bank of England interest rate cut to 4.5%, as the Bank halves its growth forecast for 2025 to just 0.75%.
Andrew Goodacre, CEO of Bira said: "The reduction in interest rates was expected and is welcome news for the retail sector. We have consistently maintained that rates have unnecessarily remained high for longer than required, and we anticipate this reduction will help boost consumer confidence."
However, Bira expressed serious concerns regarding the Bank's revised economic growth projections. The forecast has been halved from the previous estimate of 1.5% to just 0.75% for 2025, despite recent government initiatives.
Mr Goodacre said: "The Bank's economic growth outlook is deeply worrying. Independent retailers are still grappling with the triple impact of rising costs from last year's budget. While the Bank of England is taking steps to stimulate growth through rate cuts, more immediate action is needed from the government to support high street businesses."
The Bank's decision comes amid rising inflation expectations, with projections showing inflation could reach 3.7% in the third quarter of this year. Additionally, unemployment is forecast to increase to 4.8% over the next year, highlighting the challenging economic environment facing retailers.
Bira emphasises that while long-term infrastructure projects are important, immediate support for high street businesses is crucial.
He added: "Long-term projects like the third runway at Heathrow will do little to address the immediate challenges facing high street retailers this year. We need to see concrete government plans that will deliver immediate support to our sector."
Catch up on key industry insights with podcast episodes available now
High Street Matters will discuss crucial subjects such as consumer trends, relevant government legislation, business rates, parking and staffing, providing top tips to help to help businesses stay ahead of the retail curve.
We’re talking to a cross section of our members from across the UK, from single retail outlets to small chains, and from large department stores to leisure and hospitality.
Listen to the series, available now.
Related News
-
Yorkshire bike shop crowned first-ever Local Bike Shop Awards winner
An awards scheme celebrating independent bike shops that go above and beyond for their communities has launched in April, spearheaded by the Association of Cycle Traders (ACT), part of the Bira Group.
-
WorkNest expands services with cyber security brands joining under one banner
WorkNest, partner of Bira Legal, is expanding its services by bringing cyber security specialists Bulletproof and Pentest People fully into one brand from next month.
-
Half a million shoplifting offences still too high, says retailers' body
Shoplifting offences in England and Wales have fallen for the first time in years, new ONS figures show, but Bira is warning that half a million offences a year is still far too high.
-
BBC investigation exposes drug dealing in High Street mini-marts as Bira calls for urgent action
An awards scheme celebrating independent bike shops that go above and beyond for their communities has launched in April, spearheaded by the Association of Cycle Traders (ACT), part of the Bira Group.