With the Autumn Budget approaching, one of Britain's leading retail executives has issued a stark warning to Chancellor Rachel Reeves: the country's economic foundations need urgent repair to build sustainable growth.
Confidence Crisis Threatens Economic Recovery
Graham Bell, chief executive of DIY giant B&Q, has told City AM that consumer confidence remains the critical missing ingredient in Britain's growth recipe. The warning comes as fresh economic data reveals worrying trends in the UK economy.
The unemployment rate has surged to five per cent, while GDP growth slowed to just 0.3 per cent in the second quarter, down from 0.7 per cent in the first three months of the year. Economists now project modest full-year growth of around 1.3 per cent.
"When people feel secure about the future, they invest in their homes, their skills, their communities and that's when the economy really starts to move," Bell explained in an exclusive interview ahead of the November 26 Budget.
The B&Q boss, who leads the FTSE 100 company alongside sister brand Screwfix, emphasised that the retail sector could drive Britain's economic engine - but only with the right policy framework.
Business Rates: The Single Biggest Growth Barrier
Bell identified business rates as the "single biggest barrier to growth for retailers" and urged the Chancellor to reconsider planned changes that could penalise larger stores.
Legislation currently progressing through Parliament will introduce a higher business rates multiplier for properties valued over £500,000. While designed to provide relief for smaller high street businesses, the changes risk hitting retailers like B&Q with substantial additional costs.
"Don't penalise us for having a retail model with a large shop floor," Bell urged, warning that the proposed changes would "restrict our ability to invest and contribute to the UK's growth goals."
The B&Q chief called for large stores to be excluded from the higher multiplier, arguing this would "level the playing field, protect jobs, and unlock real growth from a sector ready to deliver."
Global Competition and Archaic Import Rules
While battling domestic tax challenges, Bell also highlighted the threat from overseas competitors benefiting from what he described as "archaic" import rules.
The de minimis rule allows low-value goods to enter the UK without customs duties, giving e-commerce giants like Amazon, AliExpress and Temu a significant advantage over British retailers.
"This is having a damaging impact on the British high street," Bell stated, noting that many UK suppliers "don't know how they can compete" with overseas rivals.
The US scrapped similar exemptions for goods from China and Hong Kong in May 2025, while the EU eliminated the exemption in July 2021. Bell warned that "the UK cannot be the last out of the blocks, or we may face intense product dumping."
Construction Skills Shortage Threatens Housing Goals
The employment data reveals another critical challenge: a severe shortage of tradespeople that threatens to undermine the government's ambitious housing targets.
According to training academy PfP Thrive, there are currently 140,000 trade vacancies across the UK, leading to "stalling essential housing and infrastructure projects."
This skills gap poses a direct threat to Labour's mission to build 1.5 million homes by the end of 2030. "If we're being honest, we have a massive mountain to climb if we have no one to build them," Bell acknowledged.
While the government has expressed support for apprenticeships, Bell emphasised that "talk alone won't fill those roles. We need to concentrate on action, now, to attract young talent into the trades and incentivise them to stay there for the long term."
With Chancellor Reeves facing what economists estimate could be a £30 billion fiscal black hole, Bell delivered a simple but powerful message: "You can't build an economy without builders."
