Food sales increased by 2.5% year-on-year in September, against a growth of 4.3% in September 2025. This was below the 12-month average growth of 3.1%.
Polling by Opinium, commissioned by the BRC, found almost nine in ten (89%) UK adults want the Government to prioritise reducing the cost of living. Ahead of the Budget, the BRC is calling on the Chancellor to raise the employer National Insurance threshold from £5,000 to £6,000, freezing the CPI-linked increase in business rates and removing shops from the high-value multiplier.
Sarah Bradbury, CEO, IGD, said: “September saw shoppers return to familiar routines as the summer holidays came to an end but despite the greater stability, shopper confidence dipped against a backdrop of surging prices at fuel pumps and planned rises in energy prices.
“Speculation around tax rises in the Budget will also be weighing on shoppers’ minds, with these factors adding pressure to household finances and translating into weaker spending. While Halloween may support impulse grocery sales in the short term, food businesses’ attention will be firmly on the Budget and what it could mean for consumer spending power, business costs and demand heading into 2027.”
“Retailers will do everything they can to protect value for customers, but Government must play its part.”
Helen Dickinson, chief executive at the British Retail Consortium, said: “Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes.
“The Chancellor cannot promise to ease the cost of living while piling more costs onto the retailers working to keep prices down. With confidence fragile, this Budget is a critical test. Retailers will do everything they can to protect value for customers, but Government must play its part. Another rise in business rates would push up pressure on prices, choke off high-street investment and put local jobs at risk. This Budget must back retail to invest, employ and grow – not make it harder.”
