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27 August 2008 Retail group sets out PBR plans to boost consumer spending

The British Retail Consortium (BRC) has called on Alistair Darling to use his Pre-Budget Report (PBR) to restore consumer confidence and alleviate price pressures on retailers.

In its 2008 PBR submission to the Chancellor, the BRC outlines a six-point plan to boost consumer spending and reduce business costs.

Its proposals include ruling out any extension of local tax raising powers, such as Business Rate Supplements, and the re-introduction of empty property relief, which was abolished in April.

The BRC also urged Darling to cut household bills and introduce zero VAT ratings for environmentally-friendly products as a matter of urgency.

‘We fully support the Government's targets on energy efficiency and its determination to reduce VAT on energy efficient products but, to truly make a big environmental impact and influence consumer change, VAT needs to be scrapped on green-friendly and energy-saving goods,’ said Stephen Robertson, BRC Director General.

On employment, meanwhile, the BRC recommends that rises in the National Minimum Wage should never exceed average earning increases. The group also advised the Low Pay Commission to take into account difficult trading conditions, such as the current environment, and their impact on the service sector.