'Problems ahead' for high street trading

Date: 22nd December 2009

High street retailers are likely to struggle with business next year, the British Retail Consortium (BRC) has warned.

The organisation said that rising unemployment, coupled with reductions in public expenditure, will affect consumers' ability to spend.

Richard Dodd of the BRC noted that "times will be tough" in 2010, although not as bad as in the previous year.

"Unemployment will go on rising and it's very clear that whoever wins the election is going to be making some big tough financial decisions over things like taxes, public spending [and] public sector employment," he explained.

"Certainly it is going to go on being tough, but probably it will be better than it was 12 months ago."

A recent study by the BRC revealed that 53 per cent of traders believe December sales will be strong because of more consumers bringing their spending forward to take advantage of the reduced VAT rate.