Andy Burnham has been urged to "reduce the cost of doing business" after High Street sales cooled sharply during last month's heatwave.
The call came as the Prime Minister set out a plan to save Britain's "hollowed-out" town centres, including a clampdown on vape shops and bookmakers. Retail bosses responded by warning that high taxes and red tape were crippling their businesses.
Figures from the British Retail Consortium (BRC) showed sales rose by just 1.3 per cent year-on-year in July, well below the 2.5 per cent uplift recorded 12 months earlier.
Food sales rise as non-food falls
Food sales climbed 3.8 per cent, but non-food sales fell 0.7 per cent, adding to evidence that it was "too hot to shop" during the heatwave.
BRC chief executive Helen Dickinson said consumer demand had struggled in the heat, leaving retailers facing a challenging start to the second half of the year. She said household budgets remained stretched, consumer confidence was fragile, and retailers continued to grapple with rising operating costs.
Dickinson said that if the Government wanted to drive growth and keep inflation under control, it must reduce the cost of doing business by tackling the taxes and regulatory burdens holding back investment and putting upward pressure on prices. She named business rates, new packaging taxes and rising employment costs as key concerns.
World Cup boosts food spending
The BRC said food sales were boosted by the football World Cup as shoppers stocked up ahead of big matches, including England's games against Mexico, Norway and Argentina. Dickinson added that non-food sales were hit by a decline in footfall as shoppers avoided the heat.
Sarah Bradbury, chief executive of the Institute of Grocery Distribution, said shoppers were feeling more positive than earlier in the year, but many households remained mindful of their budgets, meaning value continued to play a central role in purchasing decisions.
