Supermarkets urge chancellor to help them keep costs down

Nine of Britain’s biggest supermarkets have warned that shoppers could pay the price if they’re hit with extra costs.

According to the British Retail Consortium (BRC), supermarkets have had to absorb over £7bn in additional costs just this year.

And this, it says, means trying to keep food prices affordable has been “an uphill battle”.

The BRC has now sent a letter to chancellor Rachel Reeves, signed by leaders of nine major supermarkets, urging her to exempt them from a new business rates surtax on large commercial premises.

In the letter, the supermarket bosses say they’re “acutely aware of our responsibility to deliver affordable, quality food to millions of households”. 

However, they say their “ability to absorb additional costs is diminishing” and that higher taxes could force them to raise prices.

“It will be households who inevitably feel the impact,” the letter reads.

Helen Dickinson, chief executive of the BRC, added that exempting supermarkets from the business rates surtax would support jobs and investment nationwide.

“The chancellor has rightly made tackling inflation her top priority, and with food inflation stubbornly high, ensuring retail’s rates burden doesn’t rise further would be one of the simplest ways to help,” she said.

Reeves acknowledges cost-of-living concerns ahead of Budget

Although the chancellor has not shared details of what will be in next month’s Budget, she has hinted that steps will be taken to address the cost of living.

“I recognise that it is ordinary working people that have shouldered a lot of the burden over the last few years,” she told BBC News.

“So I will do things differently.

“I understand that the cost of living is still people's number-one concern after the extraordinary levels of inflation we've experienced over the last few years, but I do realise the lasting impact of those price rises on ordinary people across the country."

Food inflation starting to ease

After months of gloomy headlines about soaring food prices, there has - incredibly – been some good news in this area.

Official figures show that the cost of food actually fell 0.2% compared to August.

That’s the first time there's been a monthly drop since May last year. 

And on an annual basis, the rate at which food prices are increasing slowed for the first time since March - from 5.1% in August to 4.5% in September. 

Shop around to save money

Even when it's relatively good news, lower food inflation figures may not mean much if you’re still struggling to pay for your groceries.

But there are practical steps you could take, such as shopping around for the best deals.

Aldi was recently named the UK’s cheapest supermarket by both The Grocer and Which?, but others will offer loyalty schemes that could save you money and offer other perks.

It's also worth keeping a close eye on how much money you've got coming in and going out, so you can prioritise your spending, see where savings could be made, and work out how much you can afford.

Check out our guide on how to create a budget to get started.

We’ve also put together some handy tips on how to keep the cost of your weekly shop down, which could help your money go further.