Retail revenue increased at a slower pace compared to previous months in the UK, according to the latest figures from the British Retail Consortium(BRC).

Total retail sales increased by 2.3% year-over-year in September compared to 2% growth in the same period last year.

Food sales grew by 4.3% compared to a 2.3% increase in September 2024, which was higher than the 12-month average growth of 3.4%.

Non-food sales also grew by 0.7% in September, lower than the 1.7% increase last year, which was below the overall 12-month average of 0.9%. In-store and online non-food sales increased by 0.5% and 1% year-over-year, respectively.

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However, consumers are remaining cautious as they await the upcoming Autumn Budget, said Helen Dickinson, chief executive of the BRC.

“With the Budget looming large and households facing higher bills, retail spending rose more slowly than in recent months. Milder weather meant shoppers delayed refreshing Autumn and winter wardrobes, and growth in food sales was largely inflationary rather than volume growth,” she said.

“Rising inflation and a potentially taxing budget are weighing on the minds of many households planning their Christmas spending. Retailers also face difficult decisions about investment and hiring over the Golden Quarter given uncertainty over business rates bills arriving in April.W

She added: “The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table.”