UK Government Urged to Address Iran War’s Impact on Retail Costs
Retail Sector Appeals for Government Support Amid Rising Costs
LONDON, May 6 (Reuters) - Britain's retail sector called on the government to help with soaring costs as a result of the Iran war on Wednesday, warning that without support it will be harder to keep a lid on rising prices for consumers.
Factors Driving Up Retail Costs
The British Retail Consortium trade body said the conflict was pushing up energy, production, shipping and distribution costs, compounding existing pressures from higher employer taxes, rising wages and new packaging levies.
Additional Regulatory Pressures
• The BRC also flagged further regulatory burdens, including guaranteed hours provisions under new employment law and the proposed reformulation of thousands of food lines.
Industry Requests for Government Action
• It wants the UK government to follow Germany and reduce electricity costs for businesses by moving levies off bills.
• It also wants the government to delay the proposed food reformulation and review packaging levies.
Public and Industry Reactions
• The BRC said polling by Opinium it commissioned showed four in five people fear the Iran war will push up food prices.
• Last month supermarket group Sainsbury's called for government support for the food sector.
(Reporting by James Davey; Editing by Alexander Smith)
