Retail sales are predicted to fall at an accelerated rate in the run-up to the November Budget, according to a new survey, as Britons brace for potential tax increases and rising prices.
The Confederation of British Industry ( CBI ) has suggested that retail sales could plummet in November, reflecting household concerns about being hit by another extensive tax raid from Chancellor Rachel Reeves, as reported by .
The CBI's retail sector survey indicates that sales volumes are anticipated to drop more rapidly in November, with the weighted balance projected to decrease from -29 in September to -39 next month.
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The CBI also indicated that wholesale sales volumes experienced a sharp decline in the year to October.
Sales have consistently remained below seasonal norms based on data collected over the past two months, according to researchers who surveyed 192 retailers and wholesalers about their business prospects
It is widely anticipated that Reeves may target households rather than businesses to prevent further hiring downturns and a surge in inflation over the coming year.
Martin Sartorius, principal economist at the CBI, stated that the retail sector was experiencing a "prolonged downturn" as annual sales volumes had fallen for the thirteenth consecutive period.
"Firms reported that consumer confidence remains poor, compounded by elevated caution ahead of next month's Autumn Budget.
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"Weak demand conditions were also reflected in further sales declines across wholesaling and motor trades.
"Persistent uncertainty ahead of the Autumn Budget is deepening the strain on retailers and other distribution firms that are still grappling with the effects of last year's fiscal decisions."
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CBI data indicated a slight rise in online retail sales volumes, but predicted a contraction in the coming month.
This pessimistic survey starkly contrasted with official retail sales figures released the previous week.
The Office for National Statistics (ONS) reported that sales had surged to their highest levels since 2022 in September.
It noted a 0.5% increase in sales volumes last month, driven by a surge in demand for gold, which benefited online jewellers.
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The figure for September surpassed economists' predictions.
ONS senior statistician Hannah Finselbach commented: "Although food stores saw very little growth, good weather in July and August boosted sales of clothing, while online retailing also did well."