There's not a lot in the Autumn Statement for retailers but not a lot was expected. The economy continues with slow, steady growth which will eventually drive wage growth and consumer spending. Some of the small increase in pensions may also trickle its way to the tills.
Commenting on a number of announcements in today’s Autumn Statement and Spending Review, David McCorquodale, UK Head of Retail at KPMG, commented:
“There's not a lot in the Autumn Statement for retailers but not a lot was expected. The economy continues with slow, steady growth which will eventually drive wage growth and consumer spending. Some of the small increase in pensions may also trickle its way to the tills.
"However, the retail sector continues to face significant cost increases from the already announced National Living Wage and was hoping for earlier reform of the business rates from the promised review. However, the Chancellor has kicked the 'business rate can’ further along the road until the Budget.
“Whilst the detail has yet to be revealed, the 0.5% apprentice levy / payroll tax is likely to create a greater cost on retailers with a large workforce.
"The devolution of communities may be welcome but there is a fear that this could also devolve red tape. Hopefully this will not be the case as that also puts an additional burden and cost on retailers. An example of this is the different application of 'bag charges' which national chains have to introduce differently in different parts of the UK."
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.