People are watching their spending this Christmas which will another blow for retailers and the economy over fears of Rachel Reeves Autumn Budget.
Karen Betts, Chief Executive of the Food & Drink Federation (FDF) said there is a shift in shoppers habits as people are tightening their belts and are not continuing with their normal festive shopping habits.
Betts told the i, “I think what we’re seeing… is that where people are buying those items now, they tend to be within their same basket spend, so not as an add-on to a basket that they would otherwise have bought.”
She warned that even if the Budget outcome is positive businesses may still be impacted as shoppers are changing their habits.
Betts warned, “Even if then the mood of gloom lifts and people do decide to spend into Christmas, you’ve only got two or three weeks of proper Christmas trading left.”
The overall rate of the Consumer Prices Index (CPI) has increased due to food and drink inflation.
A Treasury spokesman said: “The Chancellor has been clear that one of her priorities in the upcoming budget is cutting bills.
“Food inflation is falling, and our recent deal with the EU, our biggest trading partner, will help make food cheaper and UK exports easier to support the farming industry. But we know there’s more to do to support working people with the cost of living.
The tax decisions we took at the Budget last year mean that we have been able to deliver on the priorities of the British people by investing in the NHS helping to cut waiting lists and the Chancellor will continue to prioritise cutting waiting list at the Budget.
