Question to the HM Treasury:

To ask His Majesty's Government, further to reports that retail sales and consumer spending rose at the slowest pace in February since 2022, what steps they are taking to address any challenges resulting from slow growth.

The government is delivering its plan for growth and is backing British businesses.

The IMF forecasts that the UK will have the third fastest cumulative growth in the G7 during 2024-2028.Therefore, with the economy beginning to turn a corner, we are now able to make responsible tax cuts to boost growth while meeting the fiscal rules to ensure sustainable public finances. This includes cutting the employee main rate of National Insurance to 8% which, will make an average worker on £35,400 over £900 a year better off than before. This means more money in people’s pockets, helping to increase disposable income and consumer confidence.

Government continues to back retailers. At Autumn Statement 2023 we extended Retail, Hospitality and Leisure relief for 2024-5, a tax cut worth £2.4 billion, and froze the small business multiplier for a fourth consecutive year. At Spring Budget 2024, the government went further still by supporting small retailers by increasing the VAT registration threshold to £90,000 and extending the Recovery Loan Scheme, now the Growth Guarantee Scheme.

Combined, these measures will place more money in people’s pockets, boost consumer confidence, and help strengthen the UK’s retail sector.