BRC warns of rising costs as Middle East conflict adds pressure

The British Retail Consortium (BRC) has called on the UK government to act on rising domestic cost pressures, as new polling shows growing concern among consumers over the impact of the Middle East conflict on prices.

Research commissioned by the BRC found that 80 percent of people are worried the conflict will lead to higher food prices, while 73 percent expect the cost of other products to rise. Concern is also mounting around household energy bills, with 81 percent of respondents expecting increases, alongside 76 percent worried about fuel costs.

The warning comes as retailers continue to absorb higher costs across supply chains. Rising gas and electricity prices, meanwhile, are increasing production, shipping and distribution expenses, creating further pressure for businesses already managing higher operating costs.

The BRC said retailers have taken on 6.5 billion pounds in additional employment costs over the past two years due to higher employer National Insurance contributions and increases to the National Living Wage. This is in addition to a 1.6 billion pound packaging tax and further regulatory changes expected under the Employment Rights Act and the proposed Nutrient Profiling Model.

The organisation has urged ministers to address costs within government control, including removing non-commodity energy charges from business electricity bills, delaying implementation of the Nutrient Profiling Model and reviewing overlapping packaging levies.

Helen Dickinson, chief executive of the BRC, said rising global instability was adding to domestic policy costs already facing retailers. She said government action would help retailers manage pricing pressures and support efforts to keep costs affordable for consumers in the months ahead.