Retail sales growth slows – business news 10 August 2021
James Salmon, Operations Director.
Retail sales growth slows, UN Climate report, free market approach to recovery, self employed face tax hikes, UK minister hints office returnees more likely to be promoted, Call for rates reform to save high streets and housing.
Retail sales growth slows
New figures from the British Retail Consortium and KPMG reveal that retail sales increased by 6.4% in the year to July, up from 3.2% last year. Although the sector has rebounded sharply in recent months as non-essential shops have reopened, growth is starting to slow now that restrictions on the hospitality sector have been removed, and was lower than the three-month average of 14.7%. Separate analysis of debit and credit card data by Barclaycard found that consumer card spending grew by 11.6% in July, compared with the same period in 2019, with that growth driven by spending in pubs, bars and clubs, which jumped by 30.5%.
Climate
A landmark report from a UN-backed panel on climate change has stated that unequivocally that man made climate change is happening and warned that the planet will warm by 1.5° Celsius in the next two decades without major changes to tackle greenhouse emissions. Freak once in a century weather will become the norm. Meanwhile, ahead of the climate summit in Glasgow, the U.K. will be publishing its strategy on emissions in September.
Kwasi Kwarteng vows to put free market approach at heart of UK’s post-Covid recovery
The UK Business Secretary Kwasi Kwarteng has vowed to put a free market approach at the heart of the post-Covid recovery, as the economy is weaned off the massive state support it received during the pandemic.
Half a million UK partners in face tax hike in 2022
City A.M. picks up on news first reported by the Financial Times that half a million sole traders and partners may face higher tax bills than expected next year if a government proposal to change the date businesses report their profits is approved. The proposal is to change the 12-month period partners and sole traders use to calculate their profits – to bring everyone in line with either March 31 or April 5, the end of the tax year – according to a draft legislation published in July. Experts say the move would generate billions of pounds for the Treasury years ahead of the existing schedule for payments while simultaneously cutting the amount of working capital available to partners and sole traders, in law firms and accountancy groups, for up to five years.
UK minister hints office returnees more likely to be promoted
Amid Government efforts to get more people back to work in the office, UK business secretary Kwasi Kwarteng has said those who continue to work from home are less likely to be promoted. He told the BBC: “If you look at human organisations people do build relationships and build networks through face to face contact. People who come into office may had an advantage in that.” His comments come amid fears within Government that too few private sector, and civil service workers are returning to the office, putting the economic recovery at risk. One unnamed minster suggested civil servants should have their London weighting allowance removed if they refused to return to the office, triggering a row with unions. Mr Kwarteng was attempting to calm tensions yesterday, saying that he thought flexible working is here to stay but that it should be up to businesses and their employees to come to their own arrangements depending on the needs of the company.
Call for rates reform to save high streets
The British Retail Consortium (BRC) has reported that despite a boost to high street activity after the lifting of Covid restrictions, the pace of recovery is slowing and more town centre sites are falling vacant. The BRC says reform of business rates is vital to ensure investment in bricks and mortar retailing amid signs of a permanent shift towards online shopping during the coronavirus crisis. Its monthly retail sales monitor showed annual sales growth of 6.4% in July, significantly below the three-month average of 14.7%.
Housing Market
Bellway reported a strong recovery in housing revenue for the year, supported by buoyant demand for housing amid an ongoing increase in prices. For the year ended 31 July 2021, housing revenue rose by 41% to over £3.1 billion year-on-year, and was just 2.5% below the level achieved in financial year 2019, the company said in preliminary results.
Purplebricks decided to move to a fully-employed model for its sales agents, resulting in an expected rise in costs for the year.The company, which also forecast higher marketing costs, said the new model would ensure it can scale up quickly to meet consumer demand.
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