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UK retailers warn of rising costs amid Middle East conflict

May 8, 2026 United Kingdom

Amid growing concerns over the economic impact of the Middle East conflict, the British Retail Consortium has called on the UK government to ease mounting cost pressures on retailers

The British Retail Consortium (BRC) has urged the UK government to address rising business costs, warning that the ongoing conflict in the Middle East could lead to higher prices for consumers.

A new poll commissioned by the BRC found that four in five people are worried that the crisis will lead to higher food prices. Retailers say that increased energy, shipping and logistics costs are already putting pressure on supply chains.

The retail organisation highlighted that, in addition to the global challenges they are facing, companies are also under mounting domestic pressure.

“But not every pressure bearing down on retailers comes from the Gulf”, said Helen Dickinson, Chief Executive of the British Retail Consortium. “Higher national insurance, packaging levies, new regulations, and business energy charges are all domestic policy decisions, made in Westminster, and they can be addressed there”.

“Retailers are working hard to hold prices down, but they cannot do it alone. Every cost government chooses not to address is a cost that will find its way into someone's shopping basket”, she warned. The BRC has therefore called on ministers to reduce energy-related charges, delay certain regulatory measures, and review packaging taxes, in order to limit the inflationary pressure placed on households.

Image Credits: theguardian.com

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