UK retail growth slows in September as households await Budget
UK total retail sales rose 1.3% year on year in September, down from 2.3% a year earlier and below the 12-month average, according to the BRC-KPMG Retail Sales Monitor. Food sales grew 2.5% while non-food sales edged up 0.3%. Industry figures said cautious households, rising bills and tax speculation ahead of the Budget weighed on spending.
If spending remains subdued, households on tight budgets may continue to prioritise essentials, potentially leaving non-food retailers and high-street jobs more exposed. Any Budget measures that raise business costs could feed into prices, affecting shoppers already managing energy and fuel bills. Conversely, policies that support retail investment might help sustain local employment and availability. The mood around tax and bill expectations may shape consumer confidence into late 2026 and early 2027, though actual outcomes will depend on decisions yet to be made. Count: If1 spending2 remains3 subdued,4 households5 on6 tight7 budgets8 may9 continue10 to11 prioritise12 essentials,13 potentially14 leaving15 non-food16 retailers17 and18 high-street19 jobs20 more21 exposed.22 Any23 Budget24 measures25 that26 raise27 business28 costs29 could30 feed31 into32 prices,33 affecting34 shoppers35 already36 managing37 energy38 and39 fuel40 bills.41 Conversely,42 policies43 that44 support45 retail