New taxes for supermarkets: why food in Britain will get more expensive by 2026.

Food inflation forecasts

According to The Sun: Inflation on food could remain above 5% until the middle of next year if the government imposes new tax surcharges on large stores, warn retail leaders.

They emphasized that the proposed surcharge for business properties valued over £500,000, including supermarkets, will lead to increased costs for about 4,000 large retail locations.

This will lead to higher prices for consumers.

Head of the British Retail Consortium, Helen Dickinson, sharply criticized this initiative, stating that it "will take from one to give to another" and will create additional pressure on families who are already suffering.

According to a BRC poll, 61% of working adults are more concerned about prices rising faster than wages than about tax increases or unemployment levels.

The latest data from the Office for National Statistics indicates an overall inflation rate of 3.8%, nearly double the Bank of England's target of 2%.

Inflation on food and non-alcoholic beverages rose to 5.1%, the highest rate since the cost of living crisis in 2022/23.

Last week, the Bank of England refrained from reducing interest rates due to concerns that rising food prices are pushing up overall inflation.

Dickinson stated:

“Exempting all stores from the surcharge could be done at no cost to taxpayers and demonstrate the Chancellor's commitment to reducing inflation.”

BMW's financial reserves

The British financial entity BMW allocated £207 million for claims payments due to a car sales scandal. This is an increase from £70 million last year.

This is not the first company to cite costs associated with potential compensation for millions of drivers.

The financial regulatory authority is still working on a compensation scheme for consumers.

Creditors hid information about commissions paid to sellers from 2007 to 2020.

Assistance for residents near the airport

Local residents affected by the planned expansion of Gatwick Airport may receive financial assistance.

This could include payment for fees, relocation costs, and real estate agent fees if owners choose to sell their homes.

If they stay, Gatwick may cover the costs for triple-glazed windows to reduce noise.

The project to build a second runway costing £2.2 billion, which received the green light yesterday, promises annual economic benefits of £1 billion.

Closure of the Bodycare chain

The Bodycare beauty store chain is closing all 56 of its remaining stores this week after filing for bankruptcy, marking the end of its presence on the streets.

The brand, which started as a market in Lancashire in the 1970s, could not find a buyer due to rising costs and dwindling stock.

More than 440 employees will be left without jobs, with support promised for redundancy payments.

Bodycare also closed 62 stores earlier this month. Negotiations for the sale of the brand are ongoing.

Closure is planned to be completed by Saturday.

Thus, the situation in the food and retail market is becoming increasingly complicated. Rising inflation not only affects food prices but also the financial condition of consumers, which could pose a serious obstacle to economic recovery. Additionally, the closure of the Bodycare chain and the problems of other companies signal tough times for the retail sector.