![\"Busy](\"https:\/\/www.europesays.com\/iran\/wp-content\/uploads\/2026\/05\/retail.jpg\")
\t\tRetailers are calling on the government to cut energy bills (Jordan Pettitt\/PA)\t<\/p>\n\t\t\tFriday 22 May 2026 7:12 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tFriday 22 May 2026 7:17 am\n\t<\/p>\n
\t\tRetailers are calling on the government to cut energy bills (Jordan Pettitt\/PA)\t<\/p>\n
Retail sales plummeted by 1.3 per cent in April, as\u00a0Brits cut back on spending amid increasing pressure from the war in Iran.<\/p>\n
The huge fall in retail sales volumes in April was the largest since May last year and defied economists\u2019 forecasts of a softer drop. This comes after a 0.6 per cent rise in March, according to<\/a> the Office for National Statistics (ONS).<\/p>\n Retailers are ramping up pressure on Rachel Reeves to cut energy bills and red tape as they face cost inflation from the war in Iran and weakening consumer confidence.<\/p>\n In the three months to April, retail sales rose by 0.5 per cent, driven by the cosmetic and telecoms sectors.<\/p>\n March\u2019s jump in retail sales was driven by motorists stocking up<\/a> on fuel to protect themselves from rising prices.<\/p>\n Fuel volumes fell in April, as some retailers suggested motorists were conserving fuel.<\/p>\n Consumer confidence fell to a two-year low in April, according to research firm GfK, which found that Brits are stockpiling<\/a> cash for essentials.<\/p>\n Brits feel strapped for cash<\/p>\n The British Retail Consortium (BRC) said the slowdown in retail sales in April \u2013 which it said suffered a three per year-on-year cent drop \u2013 is due to falling spending confidence.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tIran war costs Next \u00a347m and may drive up prices<\/a><\/p>\n Fears of a jet fuel crisis have caused some airlines to cancel thousands of flights and hike fares, and the BRC said this uncertainty over summer holidays is hitting Brits\u2019 discretionary spending.<\/p>\n The earlier timing of Easter this year \u2013 spanning the end of March and the start of April, while it fell in late April last year \u2013 is also to blame for the April spending slowdown, the trade body has said.<\/p>\n Justin Parr, chief credit officer at trade finance provider Treyd, said: \u201cUK retail businesses are contending with consumers whose spending power is under huge pressure from the rising cost of living. <\/p>\n \u201cBroader economic data is now pointing towards higher inflation coming down the line along with increasing unemployment, meaning the operating environment is unlikely to get more benign any time soon.\u201d<\/p>\n Iran war impact \u2018to last eight months\u2019<\/p>\n On Thursday, Rachel Reeves announced<\/a> her \u201cGreat British Summer Savings\u201d plan, intended to stem the rising cost of living caused by the Iran war and stimulate spending on retailers and other businesses.<\/p>\n The Chancellor said VAT would be cut for children\u2019s food and access to entertainment, including museums and theme parks.<\/p>\n The plans, which Reeves said she will fund by closing a tax loophole used by energy companies, is set to cost the taxpayer \u00a3100m.<\/p>\n Last month, chief secretary to the Treasury Darren Jones warned<\/a> the economic pain caused by the Middle East conflict could last for eight months after the war ends.<\/p>\n \t\t\t\t\tRead more<\/p>\n