Some 63.4% of respondents cited reduced customer spending and footfall as their greatest challenge, followed by competition from online platforms (57.4%) and increasing employment costs (39%). Rent rises (21.1%), business rates (14.7%) and limited high street regeneration funding (22.7%) were also key concerns.

A total of 84% said they lacked confidence that the government was doing enough to support the sector. Most of those surveyed run a single store (89.4%) and employ fewer than five staff (86.3%).

Despite this, many businesses remain resilient. More than a third (36.7%) have traded for over a decade and 62.8% have operated for more than three years.

Retailers called for greater financial support to help them remain viable, including increased small business grants (39%) and a freeze or reduction in business rates (26.7%).

They also highlighted the need for local interventions such as improved high street infrastructure (49.4%), community events (49.8%), affordable parking (46.6%) and marketing assistance (76.9%).

Soraya Gadelrab, Spring and Autumn Fair event director, said: “This data shows how much independent retailers are struggling – but also how much they matter. The high street is more than a place to shop. It’s a space for connection, culture, and community. If we want thriving towns, we must start by backing the businesses that hold them together.”

Alex Schlagman, founding partner of SaveTheHighStreet.org, added: “These findings reveal just how critical it is to remove the barriers holding small retailers back. Through smarter support, local partnerships, and focused innovation, we can level the playing field and ensure independent businesses thrive in a changing world.”

Spring and Autumn Fair and Save The High Street.org are calling on the government to implement targeted reforms and infrastructure investment to prevent further closures and community decline.

The downturn affected most retail locations, with High Streets down 2.5% year-on-year, and shopping centres falling 2.3%. Retail Parks saw a slight increase of 0.2%.

All four nations recorded annual declines in footfall, with England posting the steepest fall at 2%, followed by 1.4% in Northern Ireland, 0.7% in Scotland and 0.4% in Wales.

Helen Dickinson, chief executive of the BRC, said: “Despite favourable weather throughout May, footfall took a disappointing turn last month, following a more promising start to the year. While stock markets stabilised, higher household bills depressed consumer sentiment and the appetite to visit retail stores.

“The chancellor’s 2024 Budget added £5bn to the industry’s costs. The government must now ensure that upcoming reforms to business rates to be announced in the 2025 Budget leave no shop paying more.”

Andy Sumpter, retail consultant EMEA at Sensormatic, added: “Despite the warm and sunny weather footfall didn’t quite follow suit, suggesting that consumers may have favoured outdoor leisure over shopping. Still, May’s result is a marked improvement on the -3.6% seen in the same month last year.

“Encouragingly, consumer sentiment has shown signs of improvement, with more shoppers feeling optimistic about their personal finances and the wider economy. Notwithstanding ongoing cost pressures, retailers will be looking to make hay while the sun shines – focusing on the right mix of experience, value, and convenience to convert seasonal footfall into sustained growth.”

During the four weeks from 6 April to 3 May, footfall increased across all segments – high street by 5.3%, retail parks by 7.5% and shopping centres by 5.6%.

Across nations, footfall also increased 6.7% in England, 6.9% in Scotland, 13.6 % in Wales, and the largest increase of 14.3% in Northern Ireland.

However, the BRC stated that this year Easter was in April compared to last year when it was in March, hence the calendar change distorts the year-on-year footfall comparisons resulting in an artificially higher April, but lower March footfall.

Taking March and April together, compared with the same two months in 2024, total footfall increased by 0.2% – high street by 0.2%, retail parks by 2.7%. Meanwhile, footfall in shopping centres decreased by 0.7%.

Helen Dickinson, chief executive of the BRC, said: “Adjusting for the late fall of Easter this year, footfall across March and April showed a small but positive trend, with retail parks continuing to perform the strongest out of all locations. This reflected the unseasonably warm and bright weather right across the UK. In England, the North East saw particularly strong growth in footfall, with Manchester and Liverpool both recording double-digit improvements in footfall. Retailers will be hoping this momentum continues into the summer months.

“If the government wishes to see thriving towns and city centres, it must ensure no shop pays more as a result of business rates reform, thereby enabling retailers’ ability to invest in their local communities.”

Andy Sumpter, retail consultant EMEA for Sensormatic, added: “April brought a welcome rebound in footfall, with shopper numbers rising 7.2% year-on-year across all retail destinations. The combination of Easter trading and the sunniest April on record helped entice consumers back into stores.

“Looking at March and April together however, the overall picture for the UK is more balanced, with footfall across the two months up just 0.2% year-on-year. While this suggests that April’s gains largely offset March’s dip, it also highlights the importance of sustained engagement beyond seasonal peaks. Retailers will now be looking to build on this momentum as we move into the summer months.”

New data from the BRC and KPMG revealed that the increase was below the 3-month average growth of 1.6% and above the 12-month average growth of 0.6%.

In the five weeks to 5 April, food sales increased by 1.6% year on year in March, against a growth of 8.3% in March 2024. This was below the 3-month average growth of 2.3% and below the 12-month average growth of 2.2%.

Non-food sales also increased by 0.6% year on year in March, against a decline of 0.4% in March 2024. This was below the 3-month average growth of 1.1% and above the 12-month average decline of 0.8%.

In-store non-food sales decreased by 0.1% year on year in March, against a growth of 0.1% in March 2024, while online non-food sales increased by 1.8% year on year, against a decline of 1.4% the year prior.

Jewellery and beauty products sales were also boosted by Mother’s Day, but bigger ticket items like furniture remained weak.

The BRC noted that the current data distorts the year on year sales comparisons for the period due to the fact that Easter falls in April while last year it fell in March, resulting in an “artificially higher” April.

Helen Dickinson, chief executive of the BRC, said: “Despite a challenging global geopolitical landscape, the small increase in both food and non-food sales masked signs of underlying strengthening of demand given March 2025’s comparison with last year’s early Easter. Retailers are making final preparations for Easter, with food expected to be the big winner next month.

“Since the start of April, retailers have had to contend with £5bn of new government-imposed costs as a result of increases to the National Living Wage and National Insurance. This rises to £7bn when the new packaging tax comes into effect in October and will undoubtedly increase inflation later in the year and hold back critical investment in high streets across the country.”

She continued: “The government has ample opportunities to kick start that investment by ensuring that no shop pays more as part of their planned reforms to business rates and that the Employment Rights Bill doesn’t reduce the availability of entry level and part time jobs. Investment and growth are what the economy needs right now.”

Linda Ellett, UK head of consumer, retail and leisure, KPMG, added: “Amidst downbeat consumer confidence in the UK’s economic outlook, and many households facing rising costs, retail sales growth feels an achievement. But with non-food sales only climbing around 1% on average, competition means there are some retailers really struggling whilst others win, especially online. Retailers will be pushing for higher growth rates as we move toward summer and holiday season, particularly as they are now paying higher wage costs and facing volatility and potential impact on their supply chains due to global tariffs.”

However, this comes despite food inflation increasing to 2.1% year on year in February, an increase from the 1.6% rise in January and above the 3-month average of 1.8%.

As part of this increase, fresh food inflation was up to 1.5% year on year in February, compared with an increase of 0.9% in January.

Moreover, ambient food inflation increased to 2.8% year on year in February, against growth of 2.5% in January. Again February’s figure was above the 3-month average of 2.7%. nBreakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes.

Furthermore, the BRC stated that climbing global coffee prices could threaten to push the morning costs higher in the coming months.

Non-food inflation helped to offset the increase in food as it decreased to -2.1% year-on-year in February, against a decline of -1.8% in January.

Helen Dickinson, BRC CEO, said: “While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year. In non-food, month on month prices rose as January Sales promotions ended, especially in electricals and furniture. But discounting is still widespread in fashion as retailers try to entice customers against a backdrop of weak demand.

“Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers. We expect food prices to be over 4% up by the second half of the year.

She added: “If Government wants to keep inflation at bay, enable retailers to focus on growth, and help households, it must mitigate the swathe of costs facing the industry. It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals, and delaying the new packaging taxes.”

According to the latest BRC-Opinium Consumer Sentiment Monitor, the economy worsened for the fifth consecutive month, down from -34 in January.

The BRC reported that even Gen Z, despite being the most “upbeat” generation saw a drop in optimism, while the gender divide also widened in February with women more pessimistic than men about both the economy and their own finances by 13 and 17pts respectively.

The personal financial situation index dropped to -11 in February, down from -4 in January.

However, personal spending on retail rose to -5 in February, up from -9 in January while personal spending overall remained at +4 and personal saving remained at -3.

Helen Dickinson, chief executive of the British Retail Consortium, said: “People’s expectations of the economy reached a new low, having fallen almost 40pts since July 2024. With many businesses warning of the impact that April’s employer NIC’s increase will have on hiring, and the rising energy price cap pushing up the cost of domestic bills, it is little surprise that many households are worried. And while there was a positive increase in expectations of personal retail spending, this may be largely driven by the expectations of higher prices in the future.

“Expectations of higher prices are not unfounded, with two-thirds of retailers saying prices will have to rise as a result of the £7bn in additional costs, including higher employer NICs and a new packaging levy. Almost half of retailers also warned of hiring freezes, with entry-level jobs often among the first to go as they seek any cost efficiencies to help them protect customers from the worst of the rising costs.”

Dickinson continued: “As the Government bill on the future of business rates progresses through Parliament, it is essential that no shop ends up paying more in rates as a result of these reforms, otherwise retailers will face a triple whammy of budget costs, business rates rises, and new packaging and recycling levies, all of which will filter through to consumer prices.”

UK total retail sales in December 2024 increased by 3.2% year on year, against a growth of 1.9% in December 2023, according to new data from the BRC and KPMG International.

This was above the three-month average growth of 0.4% and above the 12-month average growth of 0.7%.

The UK total retail sales of 2024 overall increased by 0.7% from 2023, and for the three months to December (the Golden Quarter), sales growth was 0.4% year on year.

Food sales also saw an increase by 1.7% year on year in December, against a growth of 6.3% in December 2023. However, this was below the three-month average growth of 2.1% and below the 12-month average growth of 3.3%.

Meanwhile, non-food sales were up by 4.4% year on year in December, against a decline of 2.1% in December 2023. This was above the three-month average decline of 1.1% and above the 12-month average decline of 1.5%.

In-store non-food sales also increased by 0.4% year on year in December, against a decline of 2.9% in December 2023. This was above the three-month average decline of 2.4% and above the 12-month average decline of 2.2%.

Additionally, online non-food sales increased by 11.1% year on year in December, against a decline of 0.8% in December 2023. This was above the three-month average growth of 1.2% and above the 12-month average decline of 0.4%.

Lastly, the online penetration rate (the proportion of non-food items bought online) increased to 39.6% in December from 37.2% in December 2023. This was above the 12-month average of 36.6%.

Helen Dickinson, chief executive at the British Retail Consortium, said: “Following a challenging year marked by weak consumer confidence and difficult economic conditions, the crucial ‘golden quarter’ failed to give 2024 the send-off retailers were hoping for. Non-food was particularly hard-hit, with sales contracting from the previous year. Food sales fared better over the Christmas period, ticking up slightly from the previous year, meanwhile beauty products, jewellery and electricals made a strong showing under the tree this year.

“While we project sales growth to average 1.2% in 2025, this is below the projected shop price inflation of 1.8%. This means volumes are likely to fall this year, all while the regulatory and tax burden on retailers will increase costs by £7bn from rising National Insurance Contributions, increasing national living wage, confirmed in the Budget, and new packaging levies.”

She added: “With little hope of covering these costs through higher sales, retailers will likely push up prices and cut investment in stores and jobs, harming our high streets and the communities that rely on them. The government must find ways to mitigate this, so that retailers can invest more in growth and jobs, starting with its planned business rates reform where it must ensure that no shop ends up paying higher rates than they do already.”

Linda Ellett, UK head of Consumer, Retail and Leisure, KPMG, added: “With Black Friday falling as late as it did, this year it was part of the Christmas shopping season even more so than in previous years. December, coupled with Black Friday week at the end of November, delivered welcome sales growth for retailers.

“Computing and mobile phones, and beauty products, particularly saw sizable jumps in sales both in-store and online, with the likes of AI-enabled tech and beauty advent calendars boosting festive takings.However, sales growth during the golden quarter of October to December was minimal, reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level compared to past years.”

It comes as public confidence in the state of the economy “took a nosedive”, falling 8pts to -27, creating a widening gap between expectations of the economy and of people’s own finances which remained unchanged.

The BRC also found that consumers’ personal finance situation remained at -3 in December, the same as in November.

However, personal savings increased to -5 in December, up from -9 in the previous month.

Helen Dickinson, CEO of the British Retail Consortium, said: “If these expectations are realised, retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales. The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7bn of new costs from the Budget set to hit the industry in 2025.

“With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate the impact this will have on growth, the government must ensure that its proposed business rates reform does not result in any shops paying higher rates than they already do.”

The House of YSSO is open at 76 New Bond Street from 6 December 2024 to February 2025, with the brand’s full collection of designs available to buy.

Created in small batches in an artisanal foundry and workshop in Athens, each piece is made from recycled bronze and plated with either gold or sterling silver.

Selected from a pool of 800+ applicants, YSSO is the 6th brand selected to open a store and the first on New Bond Street.

The pop-up is part of Westminster City Council’s Meanwhile On project, set up to provide innovative brands with access to high-profile retail spaces.

The project gives brands significant relief on business rates, budget for store design, and end-to-end support from project delivery partner Someday Studios.

Alexia Karides, YSSO founder, said: “As you step into the first part of the House of YSSO on New Bond Street, you are immersed in a unique installation that invites you to explore the depths of our collections. Inspired by the sun, the sea, and the architecture of Greece, this space reflects the natural beauty that shapes our designs.

“Each collection is thoughtfully displayed, allowing you to experience the way nature and culture influence our jewellery—whether it’s the warmth of the sun, the textures of the sea, or the timeless elegance of architectural forms. Surrounded by these elements, you can connect with the spirit of the pieces in a way that goes beyond simply viewing jewellery.”

Employers’ National Insurance contributions will rise by 1.2%, from 13.8% to 15%. In addition, the threshold at which businesses start paying National Insurance on a worker’s earnings will be lowered from £9,100 to £5,000, a measure that will raise £25bn a year.

In order to help small businesses, the chancellor said that the employment allowance will increase from £5,000 to £10,500, which the chancellor says will mean 865,000 employers won’t pay any National Insurance at all next year.

It comes as Reeves promised not to increase National Insurance, VAT and income tax for “working people”.

The chancellor has also stated that the freeze on income tax and NI thresholds will not be extended. There had been reports that the chancellor had considered extending the freeze beyond 2028 in order to raise more tax revenue. From 2028-2029, personal tax thresholds will be updated in line with inflation, however.

As part of today’s budget, Reeves also confirmed that the National Living Wage will rise by 6.7% to £12.21 an hour from April, up from the current pay of £11.44.

Earlier this year, the Low Pay Commission recommended that the National Living Wage should increase by 5.8% to £12.10, but the chancellor has gone slightly further.

For 18 to 20-year-olds, the national minimum wage will rise 16.8% from £8.60 to £10, while pay for apprentices will rise from £6.40 to £7.55 an hour.

The chancellor also promised that the current 75% discount to business rates for the retail, hospitality and leisure industries in 2025-26, due to expire in April 2025, will be replaced by a discount of 40%, up to a maximum discount of £110,000.

Alongside this, Reeves announced that the duty on draught alcohol will be cut by 1.7%, taking a penny off pints in pubs. Alcohol duty rates on non-draught products will increase in line with RPI from February next year.

Lower rate Capital Gains Tax (CGT) will be increased from 10% to 18% while the higher rate will be increased from 20% to 24%. Despite this, the UK will still have the lowest capital gains tax of any country in the G7.

The CPA on residential property will remain at 18% and 24% but rates on carried interest will increase to 32% from April 2025, and from April 2026, Reeves will deliver further reforms.

Previously CGT was 24% on gains from selling additional property, or 20% on profits from other assets like shares.

Furthermore, Reeves announced that corporation tax will be capped at 25% for the entire duration of parliament

Reeves also confirmed that the fuel duty freeze is set to continue into next year, and the 5p duty cut will not be reversed.

The government will also launch the ‘Get Britain Working’ white paper to help those who are unemployed get back to work.