Rishi Sunak Warned About Brexit Red Tape and Tax Burden Impact on UK's Cost of Living Crisis

Britain’s biggest retailers have cautioned Rishi Sunak that his approach to Brexit red tape and the tax burden could prolong the UK’s cost of living crisis into 2024. The British Retail Consortium (BRC) expressed concerns regarding the high cost of doing business, which poses a threat to reducing inflation next year and could lead to ongoing price rises in shops. The BRC highlighted that compliance with post-Brexit rules has resulted in "hidden costs," making it challenging for businesses to keep prices down, while also pointing out that chancellor Jeremy Hunt's measures could potentially fuel inflation. The BRC's chief executive, Helen Dickinson, emphasized the difficulties faced by retailers in delivering affordable prices to customers due to government-imposed increases in business rates bills and the hidden costs of compliance with new regulations. Additionally, the BRC raised concerns about the potential impact of the largest rise in the 'national living wage' and the government's decision to keep a planned increase in business rates, which could cost companies £400m next year. The Bank of England governor, Andrew Bailey, further reiterated warnings about the UK economy's growth potential and the lack of foreseeable interest rate cuts, while the Office for Budgetary Responsibility (OBR) chairman expressed concerns about the credibility of the government's spending plans. Amidst these challenges, foreign secretary David Cameron is expected to raise the issue of post-Brexit tariffs on the automobile industry with EU Commission vice president Maros Sefcovic during his visit to Brussels for a two-day summit, with the aim of potentially delaying the implementation of the new "rules of origin" to mitigate impact on the electric vehicle (EV) market.