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UK: Budget anxiety dampens retail spending and footfall

Oct 17, 2025 United Kingdom

Retail activity in the UK is showing signs of slowing down, with consumer caution ahead of the Autumn Budget dampening spending and footfall in major shopping areas

According to the British Retail Consortium (BRC), total UK retail sales increased by 2.3% year-on-year in September, which is slightly above the 12-month average of 2.1%.

However, this growth was primarily driven by inflation in food prices rather than an increase in consumer spending. Non-food sales rose by a modest 0.7%, falling below the annual average, while online non-food sales grew by just 1%, a significant drop from the 3.4% growth recorded the same period a year ago.

“With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months. Milder weather meant shoppers delayed refreshing Autumn and Winter wardrobes and growth in food sales was largely inflationary rather than volume growth”, commented Helen Dickinson, Chief Executive of the British Retail Consortium.

The footfall data paints a similarly subdued picture. Overall, UK retail visits declined by 1.8% in September, as compared to the same month of 2024. High streets and shopping centres recorded the steepest drops, at 2.5% and 2.0% respectively. Helen Dickinson said that London’s Tube strikes, heavy rainfall and Storm Amy all contributed to the downturn, further undermining already fragile consumer sentiment.

Retail leaders are urging the government to address cost burdens, particularly those relating to business rates and employment costs, in the upcoming Budget.

“As we enter the ‘golden’ quarter for the sector, retailers are planning product ranges and promotions to try and increase that rate of sales growth. They are also mindful that the Budget is beginning to move into view, with related detail about business rates reform and a general need for a boost to consumer confidence”, said Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG.

Image Credits: easterneye.biz

United Kingdom Confidence Organisations Retail Sales