Chancellor Rachel Reeves is facing blame after official figures revealed a second consecutive monthly fall in retail sales, with a disappointing Black Friday failing to provide its usual boost to the high street.
A Second Month of Decline
The Office for National Statistics (ONS) reported that retail sales volumes dipped by 0.1 per cent in November. This follows a significant 0.9 per cent reduction in October, effectively wiping out the 0.8 per cent growth seen the previous month in September.
While the ONS noted that sales were still up in the three months to November compared to the three months to August, the latest figures have sparked serious concerns about the health of the economy and prospects for the vital Christmas trading period.
Black Friday Fails to Ignite Spending
Senior ONS statistician Hannah Finselbach stated that retail continued to grow over the three-month period, helped by clothing and technology shops. However, she delivered a sobering assessment of the Black Friday effect.
"This year November's Black Friday discounts did not boost sales as much as in some recent years," Finselbach said. "Once we adjust for usual seasonality, our headline figures fell a little on the month."
A separate ONS household survey underlined the cautious mood, finding that although some people planned to shop more this Black Friday, almost twice as many said they intended to spend less.
Chancellor Blamed for Eroding Confidence
Analysts were quick to point the finger at the government, arguing that political and economic uncertainty is crippling consumer confidence. Jonathan Moyes, Head of Investment Research at Wealth Club, offered a stark analysis.
"This is another grim reading on the health of the UK economy," Moyes said. "The credit for these numbers will surely go to the Chancellor, who spent much of the month running what little confidence the UK consumer had into the ground."
He warned that higher taxes could worsen the situation, "potentially hampering economic growth and risking an economic doom loop." Rajeev Shaunak, head of consumer at MHA, noted that retail sales remained flat in November after a weak October, indicating the anticipated Black Friday rush failed to materialise.
"As the festive season approaches, many on the High Street will be hoping for a further spending boom that seems increasingly unlikely," Shaunak commented. He added that despite falling inflation and an interest rate cut, evidence suggests households are tightening their belts further.
The government now faces mounting pressure as the crucial Christmas 'golden quarter' gets underway, with retailers anxiously awaiting footfall data from what is traditionally the busiest shopping Saturday of the year.
