High street on a ‘knife edge’ as retail sales stall ahead of Autumn Budget

High street on a ‘knife edge’ as retail sales stall ahead of Autumn Budget Fragile consumer confidence ahead of Chancellor John Healey's first Budget next week is affecting high street spending. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Katie Elliott , Consumer Editor, Henry Saker-Clark 08:38, Fri, Oct 23, 2026 Updated: 08:38, Fri, Oct 23, 2026 High street on a ‘knife edge’ as retail sales stall ahead of Autumn Budget (Image: Getty) The UK high street is on a "knife-edge" as retail sales stall ahead of Labour's crucial upcoming Autumn Budget . The Office for National Statistics (ONS) said retail sales volumes fell by 0.4% in September, compared with the previous month. It was a steeper drop than expected, with economists predicting a 0.1% decline for the month. The fall points to fragile consumer confidence ahead of Chancellor John Healey’s first Budget next week. It followed a 0.7% increase in August and a 0.4% fall in July. Article continues below ADVERTISEMENT These were both revised upwards in the latest figures, improving from a 0.5% estimated rise for August and a predicted 0.5% decline in July. The monthly decline was partly linked to weakness from clothing and footwear retailers, which saw a 0.9% fall for September. Retailers reported that unusually warm weather in September led to subdued sales of autumn and winter clothing lines. Food stores saw sales fall by 0.4% for the month, representing the weakest performance for four months. Get personal finance news, money saving tips and advice plus selcted offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . It represented a step back after growth in July and August, after hot summer weather had boosted demand for some products. Elsewhere, motor fuel sales volumes rose 2.2% despite prices rising again, as demand for petrol and diesel continued its recovery since prices first spiked early in 2026. Article continues below ADVERTISEMENT The ONS added that the volume of products bought from retailers was up 0.7% for the third quarter of 2026, compared with the previous three-month period. Article continues below ADVERTISEMENT The fall points to fragile consumer confidence ahead of Chancellor John Healey’s first Budget (Image: Getty) ONS senior statistician Hannah Finselbach said: “Retail sales grew in the latest quarter with growth led by motor fuel which, despite recent price increases at the pump, have now returned to monthly sales levels last seen before the start of the conflict in the Middle East. “Food and drink sales also contributed to growth in the quarter, partly helped by the warm weather and the World Cup, although they fell back slightly in September.” Matt Swannell, chief economic adviser to the Item Club, said: “Digging into the detail, there are some tentative signs that the consumer is coming under pressure. “Over the last three months, non-food store volumes were flat with some firms reporting that customers are cutting back.” Andy Burnham’s triple lock threat exposed – now we know what it will cost state pensioners Martin Lewis issues new Blue Badge update to drivers after rule change Jacqueline Windsor, head of retail at PwC UK, said: “With most retailers’ sales coming in the last three months of the year, the upcoming peak season remains on a knife edge. “This time last year, uncertainty surrounding the late budget at the end of November held back spending in the preceding two months. “While that makes this year’s comparisons easier, retailers will be hoping that anything announced by the Chancellor this year does not add further to their cost of doing business nor dent consumers’ sentiment, which already seems to have fallen from the highs at the end of summer.” High Street Retail Budget 2026 Cost of living John Healey Economy Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments