KPMG UK reacts to retail and hospitality measures in Autumn Budget

Linda Ellett, Head of Consumer, Retail and Leisure for KPMG UK, said:

“Many retailers have long called for business rates reform, as the age of e-commerce grew and the cost of bricks and mortar retail rose. Retailers will be diving into the detail of the changes announced today, with some set to gain and others set to lose, depending upon their respective rateable value. Those losing, will at least, welcome the acknowledgement of impact in the shape of transitional relief and hopefully some permanency of the new arrangement. UK-based online sellers will be more unanimous in their reaction to proposals to ensure that non-UK based online sellers don’t continue to gain a competitive advantage by not having to pay customs duty. The key now will be how quickly the Government can make the change.

“KPMG research showed that the number of people feeling that the economy is worsening increased to 62% at the start of the final quarter of the year, up from 43% when 2025 began. And this is having consequences, as despite the majority of people still feeling secure in their personal financial situation, their nervousness about what the economy may mean for them is leading to spending cuts or delay. Those unaffected by income tax thresholds or other measures announced today may now feel confident to get spending again. However, some consumers will feel a tightening as these measures come into place. Retailers and hospitality businesses will be hoping that in the coming months the Government evidence that the economy is growing and provide increased confidence to consumers about the UK’s economic health.”