Britons are reluctant to spend, report shows

Date: 7th June 2011

Retail sales have fallen across the UK in the last year, according to figures from a recently-published report.

The latest study by the British Retail Consortium (BRC) and KPMG has shown that sales have fallen by 2.1 per cent on a like-for-like basis since May 2010.

This could have an effect on a number of small businesses operating in the UK's retail sector, as the BRC claims the fall is down to reluctance among consumers to part with money.

Stephen Robertson, director-general of the BRC, said: "After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the high street really are.

"The first half of May was better than the second, when the weather turned unseasonably wet and cold in many parts of the country, but customers' fundamental reluctance to spend is now clear to see. Households' disposable incomes continue to be squeezed by uncomfortably high inflation and low wage growth, while uncertainty over the effects of government cuts is hitting consumers' sentiment about future finances."