1% of a little is not the same as 1% of a lot more. Especially when many of those on Benefits will see outgoings increase as the replacement for the Poll Tax arrives causing many to pay a percentage when they have paid nothing before, and the Bedroom Tax charged on families who cannot find a smaller Council home to move to, or a private rental they can afford.
Add to that the REAL rate of inflation (and not that magic figure HMG comes up with all the time) and that will hit ALL of us harder and harder.
High St shops are going to flounder as they cannot compete with Internet shopping in many cases. High rents and business taxes will turn many High St's into ghost towns... and not even the charity shops will survive.