The Bank of England has increased the base rate of interest by 0.75% points and has said the UK is already in recession. The Bank has also warned that the country could face a protracted contraction in the coming years with high inflation.
The unemployment rate is also climbing to 6.5%, which is also the highest since the financial crisis.
Andrew Goodacre, ceo of Bira, commented: “As expected interest rates have increased and this continues the current trend for negative news for consumers and businesses alike. This latest increase will further dampen consumer confidence and reduce spending at the busiest time of year for retailers.
“When the chancellor delivers his autumn statement on the 17 November, we must see some positive news for independent retailers who are increasingly concerned about the future of their business and the communities they serve.
“I do not doubt the challenges faced by the chancellor and yet we cannot afford to increase the burden on high street retailers. Independent retailers need assurance that business rates will not be increased and energy support will still be in place next year.”
