British retailers’ optimism has fallen to a two-year low, the Confederation of British Industry said, and is its weakest since households were hit by surging energy prices and financial markets took fright at former prime minister Liz Truss’ fiscal plans.

The CBI’s quarterly survey of retailers showed their assessment of the business situation dropped to -21 in November from -13 in August, its lowest since a reading of -22 in November 2022.
The CBI’s monthly retail sales balance sank to -18 in November from October’s -6, its lowest since August.

Retailers had been particularly badly affected by a GBP25 billion ($31 billion) tax rise on employers in finance minister Rachel Reeves’ October 30 budget, the CBI said.

“The stark rise in Employers’ National Insurance next year will hit retailers hard. And the planned increase in business rates for higher-value properties will add significant operational costs for distribution centres,” CBI lead economist Ben Jones said.