Business

His Majesty’s Revenue and Customs (HMRC) has reported the loss or theft of nearly 3,000 electronic devices over the past three years, fuelling growing concerns over government cybersecurity as cyberattacks and phishing scams surge across the UK.

Data obtained through a Freedom of Information (FOI) request and analysed by the Parliament Street think tank reveals that a total of 2,897 devices—including mobile phones, tablets, and laptops—were lost or stolen from the tax authority since 2022. The combined value of the missing hardware exceeds £1.8 million.

This revelation comes just weeks after a sophisticated HMRC phishing attack saw £47 million stolen from more than 100,000 individuals, highlighting what experts describe as the increasing vulnerability of UK government systems.

Of the total figure, 393 devices were confirmed as stolen, with an estimated value of £295,818. A further 2,504 items were recorded as lost—including 2,181 mobile phones, 866 of which were reported missing in the past year alone.

An HMRC spokesperson said that all employees are required to report any missing equipment as a security incident, triggering internal investigations. The tax authority added that standard-issue devices are encrypted to HMG (Her Majesty’s Government) security standards and are remotely deactivated once reported missing.

The high number of missing phones, HMRC said, was partly due to audits identifying legacy devices that had been replaced but were not properly decommissioned. The figures also include items lost in the post.

Despite these explanations, cybersecurity professionals say the loss of such a large number of potentially sensitive devices is deeply concerning.

“Stolen devices are a major national security risk for government departments,” said Andy Ward, SVP International at Absolute Security. “They hold vast quantities of sensitive data—from home addresses and VAT filings to details of ongoing tax investigations. If that data is compromised, individuals and businesses could face devastating financial losses, fraud, and identity theft.”

He added: “Organisations must be able to immediately freeze or shut off lost devices to prevent wider network breaches. The weakest link—whether it’s a misplaced phone or an undertrained employee—can open the door to catastrophic attacks.”

The HMRC figures sit within a wider trend of public sector data security lapses. Over the same three-year period, the Ministry of Defence recorded 1,166 lost or stolen devices, while a further 688 devices went missing from bodies including the Bank of England, the Department for Science, Innovation and Technology, the Competition and Markets Authority, and the Department of Health and Social Care.

Arakadiy Ukolov, CEO and Co-Founder of Ulla Technology, warned that the risks go beyond hardware.

“Whether you’re in financial services, government, or HR, strong data protection must be non-negotiable,” he said. “Every organisation needs a robust governance model supported by privacy-first digital infrastructure. Combine that with staff training and awareness—especially around modern risks like AI platform data leakage—and you significantly reduce the likelihood of a breach.”

As government departments digitise more services and store increasingly sensitive personal and financial data, experts are calling for better internal oversight, stricter reporting protocols, and investments in next-generation cybersecurity systems.

For businesses and taxpayers alike, the message is clear: when it comes to safeguarding data, vigilance is no longer optional.

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Nearly 3,000 HMRC laptops and phones lost or stolen, raising cybersecurity fears

Businesses adopting the direct-to-consumer model are on the rise today. On the other hand, traditional businesses following conventional techniques still struggle to achieve this success.

A major reason for their struggle is not to update strategies. It unintentionally results in not meeting the consumer’s expectations. Things are different today and consumers prioritise convenience. That’s why the modern entrepreneurs offer direct home delivery and this approach lies at the heart of the DTC model. In this discussion, we will highlight what traditional businesses should learn from this business strategy. Let’s describe this modern business model first.

The DTC Model Explained

Innovation in business strategies has introduced many things over time, but those who started entrepreneurships in the early 2010s remained lucky because the DTC model was introduced then. This is a strategy helping businesses to bypass wholesalers and retailers and sell their products directly to consumers. This wonderful strategy lets the brands maintain control over their products, pricing, and customer experience. Utility Kilt UK is an example that was initiated with this concept to sell kilts in the UK. It started as a family-run business to sell kilts and soon transformed itself into an international kilt seller.

Traditional Fashion Brands and the DTC Model

The direct-to-consumer business model has achieved great success worldwide from the day it was introduced. If we specifically talk about the businesses in the UK, 85% of them have adopted this model, which is proof of its success. Some traditional fashion businesses are still making efforts with the conventional modules; they should change themselves and learn the following lessons from this business strategy.

Operates Agility For Legacy

DTC businesses operate with agility while preserving the legacy and identity of their brand and products. This model lets the businesses deal directly with customers. As a result, the brand customises a product for them and does not have to create products in bulk for wholesalers or distributors. Manufacturing something in lower quantity requires less time without compromising the quality.

Transparent Sourcing

Brands with old-fashioned business techniques usually have to manufacture and deliver in bulk. Therefore, sourcing in bulk can impact the transparency of stock. Some common issues can be miscalculation of stock, breakage of products, and more. By dealing directly with consumers, brands avoid common issues such as inventory mismanagement and product damage. In fact, the businesses ensure partnering with reliable and trackable service providers for fair delivery.

Craftsmanship and Authenticity

Imagine yourself as an artisan for a while and getting orders to make 2 kilts in a day. On the contrary, someone orders 10 kilts in a day. What would be your priority? A skilled artisan who always focuses on quality, would naturally prefer making two kilts with care rather than rushing through ten. This understanding reflects the DTC model’s emphasis on craftsmanship to promote quality and authenticity because it matters today.

Supply Chain Merger with Sustainability

Transparent supply chains have become a priority for modern businesses in response to growing consumer demand for ethical practices. According to reports, consumers are willing to spend 9.7% extra to buy sustainable products. Interestingly, the DTC model also favors this thought and promotes ethical practices in making and delivering the stock to customers. All businesses, whether they are modern ones or old-fashioned brands, can benefit significantly from it.

Digitalisation Should be the Priority

We just mentioned sustainable supply chains; digitalising the business has a strong connection with it. Consumers in this advanced era prefer to shop without the hassle of commuting or navigating crowded markets, and it preserves the resources. Similarly, they want a product in their hands at a cost-effective price. This is where digitalisation comes into play. Using different social media and other platforms, businesses can market themselves and extend their shares in the merchandise.

UtilityKilt UK is among the first kilt-makers to adopt the DTC strategy, and it is recognized as one of the leading providers of high-quality, affordable kilts. We advertised our services through our website and other social media platforms. It brought our customers close to us and let us communicate directly with them.

In the same manner, digitalisation helped us to understand the requirements, and soon the process of making tartan kilts only transformed into different men’s kilts, including denim, leather, hybrid, and utility kilts. Similarly, old-fashioned businesses can adopt this method to become more visible.

Final Thoughts

The direct-to-consumer model is the core requirement of businesses today. Some traditional brands, which have been providing services for decades, are still unable to visualize themselves in this advanced era. It is because they did not update their strategies with time. If they also want to shine, they should convert their traditional strategies to the DTC model and digitalise them because it is their primary need today.

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What Traditional Fashion Brands Can Learn from Direct-to-Consumer Models!

Residential property transactions rose in June 2025, providing a welcome boost to Chancellor Rachel Reeves and signalling growing confidence in the housing market.

According to HMRC’s latest monthly property statistics, 95,080 residential properties were sold in June, with commercial transactions also showing an upward trend at 10,190 sales. The figures suggest activity in both sectors is returning to normal levels after recent volatility.

Heather Powell, Head of Property at leading advisory firm Blick Rothenberg, described the figures as “much-needed good news” for the Chancellor, noting that both residential and commercial sales are approaching the average monthly totals seen over the past three years—once the artificial peaks and troughs caused by changes to Stamp Duty Land Tax (SDLT) are stripped out.

“Property transactions are a good barometer of the health of the economy,” Powell said. “Both businesses and individuals commit to major transactions when they are feeling confident and optimistic about the future. The Chancellor will be hoping that this trend will continue, and the other economic statistics will follow.”

The increase in transactions comes amid a broader narrative of tentative economic recovery, supported by improving mortgage conditions and growing buyer interest in key urban areas. The government will be watching closely in the months ahead to see whether this upward trend in property sales translates into a sustained rise in tax receipts and economic momentum.

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UK property sales rise in June, offering boost to Chancellor Rachel Reeves

Jeremy Clarkson has revealed a bovine tuberculosis (TB) outbreak has struck his Diddly Squat Farm in Oxfordshire, leaving him and his team “absolutely devastated.” The infection, which affects cattle and not humans, will force the culling of at least three animals, including a cow currently pregnant with twins.

The 65-year-old broadcaster-turned-farmer shared the news on social media, writing: “Bad news from Diddly Squat. We’ve gone down with TB. Everyone here is absolutely devastated.”

When asked by a fan if his prized Aberdeen Angus bull, Endgame, had tested positive, Clarkson said the result was “inconclusive,” adding: “I couldn’t bear it if we lost him.”

The infected cow, he confirmed, was pregnant with twins. Under current UK regulations, infected cattle must be culled to prevent further spread of the disease. “They have to be culled. It’s the law,” Clarkson responded to one follower hoping for a recovery.

Bovine TB remains a persistent issue in parts of England, particularly the South West and West Midlands. Between April 2024 and March 2025, more than 21,000 cattle were slaughtered following TB outbreaks.

Clarkson has spoken out before about the devastation caused by TB, and about badgers’ role in spreading the disease. In previous series of Clarkson’s Farm, he criticised wildlife protection laws, describing badgers as “b*****ds” responsible for spreading TB and devastating farmers’ livelihoods.

Kaleb Cooper has now updated his followers on those cows, three of which have contracted Bovine Tuberculosis, which is an infectious disease of cattle caused by the bacterium Mycobacterium bovis

“I actually called them b*****ds and showed people what they actually do. It’s truthful,” he said in 2023. “Do not be fooled by Brian May. This is how much heartache they’re causing to people who’ve worked for generations to build up a farm that’s been wiped out by badgers.”

In the same year, Clarkson admitted to shooting badgers on his farm under licence. After activists reported blocked badger setts, police visited the farm. Clarkson said he told them: “I’ve shot all the badgers on the farm so why would I want to fill in their setts?” – insisting the action was legal.

The emotional toll of TB on farmers was also highlighted last year by Clarkson’s Farm co-star Kaleb Cooper, who shared on Instagram that three of the 21 dairy cows he co-owns had tested positive for TB. Holding back tears, Cooper said: “I don’t really know how to describe the emotion… It’s hard.”

The latest outbreak marks a fresh setback for Clarkson and his Diddly Squat team, whose efforts to manage a working farm have become a national talking point through the Amazon Prime documentary series.

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Jeremy Clarkson devastated as Diddly Squat Farm hit by TB outbreak

Adventure tourism includes thrilling pursuits like trekking rugged trails, exploring deep caves, rafting wild rivers, and experiencing safaris in remote wildernesses. These activities attract travellers seeking unique challenges and unforgettable experiences.

Beyond the adventure itself, this fast-growing sector significantly impacts emerging markets in various ways. So, let’s explore five ways in which it shapes economies and communities…

1.   Boosting Local Economies

Adventure tourism brings in travellers seeking unique and immersive experiences. This influx of visitors directly contributes to the local economy by increasing demand for things like accommodation, food services, and guided tours.

And small businesses like guesthouses, local markets, and transportation providers benefit from steady income streams as these tourists spend money within the region.

Additionally, regions often charge fees for permits or access to natural sites such as mountains or parks. These funds can be reinvested into preserving attractions that draw adventurers in the first place.

For many emerging economies that lack diverse revenue sources, this type of tourism can become a valuable economic driver supporting long-term growth while simultaneously spotlighting their unique geographic features and cultural richness.

2.   Expanding Job Opportunities

Adventure tourism creates a wide variety of jobs across multiple sectors.

Tour guides, hospitality staff, transportation operators, and artisans producing local crafts all benefit directly from the growth of this industry. Such roles often provide reliable employment in areas where economic opportunities may otherwise be limited.

The demand for skilled professionals also rises. Adventure tourists require trained safety experts like climbing instructors or dive masters, boosting the need for specialised training programmes.

Governments and private enterprises may, therefore, invest in workforce development to meet these needs.

Additionally, indirect employment opportunities emerge as supply chains grow. Farmers supplying produce to restaurants or craftsmen creating outdoor gear experience increased demand for their goods and services, for instance.

This cascading effect supports families and communities by establishing a stronger economic foundation tied to tourism activities flourishing within emerging markets.

3.   Encouraging Sustainable Practices and Environmental Conservation

Adventure tourism often promotes sustainable practices by emphasising the importance of preserving natural environments.

Many travellers seek eco-friendly experiences, encouraging businesses to adopt sustainable operations such as using renewable energy, reducing waste, conserving water, or protecting wildlife.

In turn, governments and organisations collaborate to protect fragile ecosystems that attract visitors. This may involve establishing national parks or implementing conservation programmes funded partly through tourism revenue streams.

For example, personalised luxury safari tour packages in Tanzania can help support conservation efforts.

These initiatives not only preserve biodiversity but also ensure future generations of tourists can enjoy similar experiences while maintaining the balance between tourism growth and ecological responsibility within emerging regions globally.

4.   Advancing Infrastructure and Technology Development

Adventure tourism encourages investment in infrastructure to support increased visitor numbers.

Governments and private organisations improve roads, airports, and communication networks to make remote areas more accessible. These developments often benefit local communities by enhancing transportation options and connectivity.

Technology also plays a crucial role. Online booking platforms, digital mapping tools, and mobile payment systems simplify the travel experience for tourists while boosting the efficiency of local businesses catering to their needs.

Regions focused on adventure tourism often adopt these technologies quickly.

Improved infrastructure fosters further economic development beyond tourism itself. Access to better facilities allows emerging markets to attract additional industries or investors seeking well-connected regions.

This cycle of development creates long-term benefits for both locals reliant on day-to-day resources as well as visitors exploring off-the-beaten-path destinations.

5.   Increasing Cross-Border Travel and Trade Opportunities

Lastly, adventure tourism stimulates cross-border travel as explorers seek multi-country experiences.

Regions with shared ecosystems, such as mountain ranges or river systems, benefit from cooperative tourism strategies that encourage travellers to visit neighbouring nations during a single trip.

This interconnected travel boosts trade between countries. Local artisans can sell handcrafted goods across borders to meet tourist demand, while agricultural products often find new markets within the industry’s supply chains, for example.

Collaborative marketing efforts also strengthen regional ties. Countries can promote their combined offerings through joint campaigns targeting adventure-seeking visitors worldwide.

These partnerships not only increase tourism revenue but can also improve diplomatic relations and economic cooperation among emerging economies connected by geography or cultural heritage, creating mutually beneficial opportunities for sustainable growth.

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5 Ways Adventure Tourism Is Shaping Emerging Markets

The current business landscape is complex and ever-changing. Buying cycles involve several stakeholders, forcing sales teams to upskill and broaden their expertise in effective tactics.

Transitioning from traditional interactions to virtual selling adds another layer of intricacies, demanding digital proficiency and self-initiative.

The digital sphere also changes sales operations and customer interactions, highlighting the need for adaptability and the integration of data-driven insights. To remain competitive, enterprise sales teams require robust training programs emphasizing evolving technological developments, cross-functional collaboration and conventional methodologies.

1.   Align Training With Business Objectives

Integrating sales training with overarching company goals generates a return on investment (ROI) directly related to fulfilling the company’s objectives. This helps improve sales outcomes, boost revenue and empower sales professionals. An aligned training program delivers clear guidance to support the team in achieving specific targets and lucrative growth.

For example, companies launching new products might gear the modules to deepen users’ product knowledge, develop unique selling propositions, and manage sales objections and negotiations. Likewise, training might concentrate on customer retention, including strategic client partnership development and long-term support.

2.   Personalize Learning for Different Roles

A McKinsey report shows that 42% of workers are interested in upskilling and are searching for opportunities. About 35% look to their companies to provide learning programs to help them expand their mastery.

Personalized training ensures everyone learns what they need on an individual scale to set themselves up for success. For instance, account executives require superior relationship-building and strategic closing capabilities, while sales engineers should focus on solutions. Managers also benefit from coaching and leadership development.

Janek Performance Group’s sales team development training focuses on critical selling, virtual sales, prospecting, negotiation, storytelling and account planning skills. Its sales management program emphasizes guidance and reinforcement.

Organizations might use performance reviews, self-evaluations and skills gap analyses to understand areas for improvement. They can then assess the effectiveness of personalized learning paths by collecting insights, measuring engagement and performance, and issuing quizzes to test the sales team’s newfound expertise.

3.   Leverage Data Analytics for Ongoing Improvement

With the advancement of artificial intelligence, businesses should leverage data analytics to improve enterprise sales training programs. Collecting and examining performance information, such as win rates and pipeline momentum, helps organizations select the most effective training strategy in real time.

Integrating an analytics dashboard provides leaders with concrete takeaways, enabling them to track progress on an individual and team basis. Based on these results, executives can deploy the most relevant learning modules to boost sales and achieve a greater ROI.

4.   Embrace Digital and Hybrid Training

Because of the changing business landscape, companies must embrace digital and hybrid training for remote and global teams. Integrating e-learning, virtual seminars and microlearning guarantees adaptable, expandable and captivating training for everyone.

The ability to log into training modules from any device, including tablets and smartphones, allows sales team members to learn on the go, while digital workshops encourage collaboration. Microlearning comprises brief instructional segments to solidify core concepts.

Janek’s enterprise sales training programs blend on-site training with virtual classrooms and individually paced modules. Its ATLAS end-to-end sales course has demonstrated a 9.7% performance improvement rate.

5.   Integrate Role-Playing and Real-World Sales Situations

Role-playing in real-world sales scenarios gives enterprise team members practical skills and a confidence boost during actual pitches. This training technique requires a safe space where everyone feels comfortable, supported and respected.

Trainers might take a varied approach to facilitating realistic sales environments, including mock client meetings, case study analysis, peer-to-peer role-playing and strategizing high-stakes sales opportunities. Activities will require collaboration, anticipating challenges and problem-solving, while participants also have the chance to give and receive feedback to refine their messaging and negotiation skills.

Some organizations might utilize virtual reality (VR) simulations, in which employees practice presenting proposals, giving product demonstrations or mitigating concerns. Team members use VR training headsets and controllers in a controlled environment, allowing them to become more present and immersed in the real-world sales setting.

6.   Foster a Culture of Continuous Coaching and Feedback

A 2024 Gallup survey found that workers are 3.6 times more likely to say they are motivated to do exceptional work when their employers give them daily feedback. It allows them to modify their performance immediately, gives greater purpose to what they are doing and boosts progress.

Regarding enterprise sales training, creating a culture of ongoing communication, coaching, and feedback enables professionals to adapt and excel across various markets. Sales managers should either meet or deliver written critiques regularly that team members can put into practice. Peer coaching also improves learning and encourages knowledge sharing teamwide.

Companies might establish digital solutions like performance monitoring and feedback dashboards for data-driven insights, enabling representatives to constantly alter their strategies. This type of support is essential for accountability, acquiring new skills and achieving long-term organizational success.

7.   Incorporate Cross-Functional Collaboration

Even if someone has a very particular role on the sales team, it is beneficial for them to have a holistic view of the customer journey and value proposition. Encouraging cross-functional collaboration with other departments that indirectly affect sales, such as marketing and product design, will enable better outcomes.

Leaders may organize joint panel discussions and role-playing activities to develop clear messaging and help team members anticipate customer needs. Designing cross-functional onboarding or establishing internal informational platforms are other ways to enable teams to work together on different projects or share valuable resources.

8.   Measure the ROI of Training Initiatives

Businesses must track training initiatives and performance to determine returns. For instance, insights from Janek have indicated a 1,293% ROI on its training programs.

Some key metrics sales leaders should monitor include the average number of deals closed, deal sizes and how quickly new hires acclimate to full productivity. The more indicators organizations collect during and after training, the better they can decide which modules are most effective and where to adjust the training.

Building a Future-Ready Enterprise Sales Force

Succeeding in today’s B2B environment requires an adaptive, data-driven sales approach. Implementing comprehensive sales training like Janek’s relevant and diversified programs into business objectives, leveraging insights, personalizing learning and integrating real-world situations equips teams with the know-how to reach organizational goals.

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8 Tips for Effective Sales Training Programs for Enterprise Sales Teams

Ahead of a critical Supreme Court ruling on Friday, both the Financial Conduct Authority (FCA) and the Solicitors Regulation Authority (SRA) cautioned that consumers could lose up to 30 per cent of their potential compensation by signing up to unnecessary paid-for legal services.

The warning comes as regulators scrutinise marketing practices and customer handling by firms rushing to capitalise on what could become one of the UK’s largest ever redress exercises.

The Supreme Court is due to rule on whether motor finance agreements with undisclosed commission arrangements were unlawful, following an October 2023 Court of Appeal decision which found that undisclosed commissions rendered agreements unfair. If the judgment is upheld, it could trigger billions of pounds in payouts to borrowers and pave the way for a formal redress scheme.

In anticipation of this, the FCA has already intervened in 224 misleading promotions over the past year, while the SRA has launched 89 investigations into 73 law firms over possible breaches related to high-volume claims.

Regulators are particularly concerned that some firms are advertising inflated and speculative payout figures, failing to disclose the availability of free alternatives, and not being transparent about fees or exit clauses.

Sheree Howard, executive director of the FCA, said: “We’ve seen law firms and claims management companies advertising highly speculative figures, so we are warning them of our expectations when it comes to drumming up clients for motor finance commission claims. If we introduce a redress scheme for motor finance, we will aim to make it easy for people to take part.”

Paul Philip, chief executive of the SRA, added: “Where we find cases where firms are not acting in the best interest of their clients, we will investigate and take action.”

The FCA confirmed it will decide within six weeks of the Supreme Court judgment whether to propose a statutory redress scheme, which would enable affected consumers to pursue compensation directly and without charge.

Under the joint guidance, law firms and claims handlers must now clearly inform clients about the potential for a free, regulator-led compensation route, and must disclose full costs and charges if consumers choose to engage their services.

The case has already rocked London’s financial sector, with several listed lenders seeing their share prices slump amid fears of massive compensation liabilities. Some estimates suggest total industry exposure could exceed £10 billion.

For now, regulators are urging the public to wait for clarity before entering fee-based claims contracts and have advised consumers to seek out independent, transparent information before proceeding.

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Regulators issue warning to firms over motor finance compensation practices

Technology Secretary Peter Kyle has welcomed a “speedy and decisive” crackdown by Ofcom on dozens of pornographic websites failing to implement robust age verification, marking the first major enforcement under the new Online Safety Act.

Ofcom confirmed today it is investigating 34 adult websites to determine whether they are complying with legal obligations to prevent under-18s from accessing explicit material. The action comes just weeks after the new age-check rules came into force.

“This enforcement goes to the very heart of what the Online Safety Act is here to do – protecting children from pornographic material,” said Kyle in a statement released this afternoon.

He drew a clear comparison to offline standards, saying: “No one in their right mind would think it appropriate for a child to walk into a shop and freely buy a top-shelf magazine – so why should we allow them to freely wander on to a website offering the same – if not more disturbing – age-inappropriate content?”

The Technology Secretary also pushed back against critics of the new law who have argued that age verification could amount to censorship or infringe on adult privacy. “These laws have nothing to do with censorship or policing adults seeking to access legal content,” he said. “Those who suggest otherwise are playing politics with child safety and have no practical alternatives for protecting our children from content they should never see – content that can cause lasting, even fatal, damage.”

Ofcom now has the power to investigate and potentially fine non-compliant websites under the Online Safety Act, which passed into law in 2023. The regulator can also block access to sites that continue to breach the rules.

This week’s announcement is seen by ministers as a signal that enforcement will be swift and meaningful. The government has made online safety, particularly for children, a key priority, with measures also targeting cyberbullying, grooming, and harmful self-harm content on social media platforms.

A list of the 34 sites under investigation has not yet been made public, but Ofcom says it will publish more detail as enforcement proceedings progress.

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Government backs Ofcom’s crackdown on online porn sites as age-check rules kick in

The British pound is on track for its sharpest monthly decline in almost two years, falling 3.6% against the US dollar in July as the UK currency faces pressure from both economic headwinds and shifting global sentiment.

Sterling’s slide is its worst monthly performance since September 2023, when it dropped 3.7%, and comes close to the 4% plunge seen in September 2022 in the wake of market turmoil sparked by Liz Truss’s mini-budget.

The US dollar, in contrast, has rallied throughout July—buoyed by renewed optimism following President Trump’s recent trade deals and a stream of positive US economic data. That combination helped drive a recovery in the dollar after a sluggish start to the year, prompting the Federal Reserve to hold interest rates steady this week, in line with market expectations.

Meanwhile, the Bank of England is expected to cut UK interest rates next week from 4.25% to 4%, a move that would widen the gap with US borrowing costs and further pressure the pound.

Sterling has also weakened slightly against the euro, dropping 0.7% this month to hover around €1.156.

Analysts at Oxford Economics said the outlook for the pound remains subdued, noting that fiscal concerns continue to weigh on sentiment. “We see sterling trading lower,” they told clients. “Fiscal concerns will remain in the foreground, undermining the ability of relatively elevated rates to sustain the pound.”

The pound’s recent decline adds to the uncertainty facing investors as the UK navigates slower growth, high government borrowing, and an uncertain global backdrop.

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Pound heads for worst month since September 2023 as dollar strengthens

Britain’s leading retailers have issued a stark warning to Chancellor Rachel Reeves, saying that further tax rises in the autumn budget would almost certainly lead to higher shop prices, adding pressure to struggling households and worsening inflation.

In a survey of retail industry finance directors published by the British Retail Consortium (BRC), two-thirds of respondents said they already expect to raise prices over the next 12 months—even before any new tax measures are introduced. The industry group said 85% of retailers had already increased prices in response to policies introduced in Reeves’s first budget.

The BRC, which represents over 9,000 stores employing 300,000 people, said the retail sector was bearing the brunt of government tax hikes. Helen Dickinson, chief executive of the BRC, said: “Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable.”

The warning comes amid rising inflation, with official figures showing the UK’s headline inflation rate rose to 3.6% in June. Food price inflation, as measured by the BRC-NielsenIQ monitor, increased to 4% this month, with forecasts suggesting it could rise to 6% by year-end.

Retailers have also been grappling with the effects of the government’s £25 billion increase in employer National Insurance contributions and a 6.7% rise in the National Living Wage in April. These pressures have contributed to a wave of store closures across the UK, including from chains such as Iceland, Poundland and New Look.

The BRC said the financial burden on businesses, coupled with weak consumer demand and rising unemployment, has forced many companies to freeze hiring or cut jobs. According to its survey, 42% of retailers have halted recruitment, while 38% have already reduced headcount. Nearly nine in ten (88%) said the “tax and regulatory burden” was now their top concern, a significant jump from 62% in January.

Reeves is expected to use her autumn statement to address a projected £20 billion fiscal gap. Among the options reportedly under consideration is an extension of the freeze on income tax thresholds. However, the retail sector fears that businesses could again be targeted to help fill the hole.

Helen Dickinson urged the chancellor to consider the risks of compounding inflationary pressures. “It is up to the chancellor to decide whether to fan the flames of inflation or to support the everyday economy by backing the high street and the local jobs they provide,” she said.

Business sentiment remains fragile, with only 11% of finance directors feeling optimistic about the year ahead. The BRC’s findings underline growing concern that without targeted support—or at the very least, a reprieve from further tax increases—retailers will have no choice but to pass additional costs on to consumers, threatening both household budgets and wider economic recovery.

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Retailers warn Reeves: tax rises in autumn budget risk pushing up shop prices