Retail sales in the UK experienced an unexpected decline in October, the first such drop since May, signaling consumer hesitation ahead of the upcoming Budget. Sales volumes fell by 1.1% despite a previous rise in September, with economists surprised by the downturn. Retailers attribute the pullback in spending to uncertainty surrounding the Budget and anticipation of Black Friday deals. Consumer confidence has also fallen. The Chancellor's Autumn Budget is expected to address income tax.
Retail sales fell unexpectedly last month for the first time since May in the latest sign of consumer caution ahead of the Budget . UK retailers saw an unexpected slump in business across October as shoppers "brace for difficult news" ahead of the Budget .
Released figures show the volume of sales fell by 1.1 per cent last month, which represents the first month-on-month fall since May. The industry saw a 0.7 per cent boost in September, and economists forecasted an unchanged picture for last month. In the three months to October, the Office for National Statistics said retail sales lifted 1.1 per cent compared with the previous three months.But the recent drop shows a raft of retailers reporting that shopper spending has pulled back due to uncertainty over the upcoming Budget, including high street stalwart Marks & Spencer. Separate figures released by GfK on Friday showed consumer confidence has fallen across all measures this month as it said the public is "bracing for difficult news" in the Budget. The ONS said that retailers were also seeing some spending held back in October ahead of this month’s Black Friday promotions. ONS chief economist Grant Fitzner said: "Supermarkets, clothing stores and online retailers all saw slower sales, with feedback from some retailers that consumers were waiting for November's Black Friday deals." Chancellor Rachel Reeves will deliver the Autumn Budget on Wednesday where she will reportedly stick to manifesto pledges and freeze income tax.Rajeev Shaunak told the Guardian: "The uncertainty surrounding what the Chancellor's budget will mean for individuals is only further dampening consumer confidence and spending intentions. "The Christmas trading period will be critical, and early sales indicators are expected to confirm that consumer demand remains sluggish, creating a perfect storm for retailers."BBC missing out on £1.1bn as more households opt out of paying licence fee'Just look after where we sleep': Thousands of soldiers living in cold, damp and mouldy conditions The government has committed to delivering a "generational renewal" to fix the UK’s military housing by improving more than 40,000 military homes.'All of a sudden you're safe': Law student evacuated from Gaza speaks of survivor's guilt and coping with British weather When Yara Shawa arrived in the UK to begin her Master of Laws, she brought almost nothing with her - no keepsakes from home, no belongings, not even a change of outfit.NHS prescription charges frozen by Chancellor to keep medication costs under £10 for another year The price of a single item will remain at £9.90, while three-month and annual pre-payment certificates will also be frozenShock winter rise to energy bills will leave Brits paying £1,758 per yearNHS prescription charges frozen by Chancellor to keep medication costs under £10 for another year The price of a single item will remain at £9.90, while three-month and annual pre-payment certificates will also be frozenShop worker missing for five years walks into police station days after suspects arrested for his 'murder' He went missing in 2020 and, earlier this week, officers said they had arrested three women and two men on suspicion of his murder.Royal Navy ships to be fitted with anti-drone DragonFire laser capable of 'hitting £1 coin from a kilometre away' Latest trials saw the weapon's system hit high-speed targets travelling at more than 600kph - twice the speed of a Formula 1 car.Prime Minister 'utterly appalled' by 'disgusting' 60 metre-long mountain of illegal waste dumped by fly-tippers The Prime Minister has said he is appalled by the "disgusting" mountain of waste illegally dumped by the River Cherwell - and he wants to see it cleaned up as quickly as possible.
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