The British pound sterling is gaining strength against the dollar. The current GBPUSD exchange rate stands at 1.2704.
According to the British Retail Consortium (BRC) report, total retail sales volume in February increased by 1.1% y/y compared to the 5.2% rise one year ago. This figure does not consider inflation, which amounted to 4% in 2023.
It turns out that retail sales grew at the slowest pace in the last 18 months. The BRC believes that the main cause of the problem is the rainy weather in the UK, which deters buyers. Even Valentine’s Day did not motivate consumers.
The retail community is convinced that the authorities must reduce business rates in the tax code. Many important details could emerge today, Wednesday, as the Treasury presents the budget.
If the authorities do not decide to ease the tax burden, rates will rise by 400 million pounds (507 million USD).