UK retail sales rise but stores fear tax worries could hit festive period

<p>Warm weather and interest rate cut lift sales in August, as food, drink and computers perform strongly</p><p><a href="https://www.theguardian.com/uk-news/2025/sep/01/uk-experienced-its-hottest-summer-on-record-in-2025-met-office-says">Record warm weather</a> and a Bank of England <a href="https://www.theguardian.com/business/2025/aug/07/bank-of-england-cuts-interest-rates-quarter-point-4">interest rate cut</a> lifted retail sales in August, according to the latest survey, but retailers fear that speculation about tax rises could weigh on consumers in the crucial pre-Christmas trading period.</p><p>Retail sales increased 3.1% year on year as consumer spending on food and drink rose, and sales of computers and related equipment performed well as parents readied children for the new school year.</p> <a href="https://www.theguardian.com/business/2025/sep/09/uk-retail-sales-tax-christmas">Continue reading...</a>