POPULAR WORDS

Retailers say the Federal Government is digging deep and hoping the recession ends soon in handing down its 09-10 Budget.

Australian National Retailer’s Association (ANRA) CEO Margy Osmond says tax cuts and an increase in pensions are a "welcome prospect for sustained additional spending".

“However, some measures including belt tightening on family payments and changes to the private health insurance rebate will be a bitter pill for many families," she says.

“Most importantly, the frightening forecast of 8.5 percent unemployment will still be playing on the minds of consumers and could lead to the slashing of retail sales by as much as $2.5 billion.

“This contraction could cancel out the boost provided by the Government’s second round of cash handouts prior to the Budget.”

Osmond says the Government must deliver its tax cuts to buffer against the impact of rising unemployment.

"The Government should be commended for sticking with this promise in difficult times," she says.

“Consumer confidence is brittle at the moment."