How could the emergency Budget affect the sector?

Retail & Consumer companies will be monitoring the announcement on June 22

Here are a few pointers from Paul Davies, a partner in the PwC tax team:

Spending cuts vs tax rises? 

“In general the Retail & Consumer sector would welcome a further commitment to spending cuts rather than tax rises, since the latter would have a far greater impact on consumer spending. Within the sector, any tax rises would clearly have a greater impact on companies at the discretionary end of the scale, rather than those supplying essentials like food and everyday  household goods.” 

National Insurance

“Retailers, in particular, have welcomed the fact that the Coalition has committed to deliver on the Tory proposal to reverse the proposed increase in employers’ National Insurance. The big retailers have some of the biggest workforces in the country, so any rise here would have had a disproportionate effect.”

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