UK consumers are showing increasing worry about the cost of living for the upcoming year, according to new figures from the British Retail Consortium (BRC).

A survey conducted by Opinium found that 57% of 2,000 respondents said their biggest concern was “prices rising faster than wages”. Other concerns were tax rises (49%) and higher unemployment (26%).

The BRC warned that food inflation will increase and stay above 5% in the year 2026 if the Autumn Budget brings in higher taxes.

Helen Dickinson, CEO at the British Retail Consortium, said: “The Government risks losing the battle against inflation, and working families are understandably worried.”

”With many people barely recovering from the last cost of living crisis, the Chancellor will want to protect households and enable retailers to continue doing everything they can to hold back prices,” she added.

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Dickinson warned the biggest risk to food prices would be to include large shops – including supermarkets – in the new surtax on large properties.

“Removing all shops from the surtax can be done without any cost to the taxpayer and would demonstrate the Chancellor’s commitment to bringing down inflation,” she said.

Last Autumn’s Budget added £7 billion to retailers’ expenses due to higher National Insurance Contributions and National Living Wage, as well as the new packaging tax.

Major retail executives have warned the Government that further tax rises will lead to a slowdown in hiring and higher prices in supermarkets.

However, the Government has reiterated that business rates for retail, hospitality and leisure will be decreased.