More than 400 retail jobs have been lost every day this year as the UK High Street faces soaring costs, writes Emily Hawkins.
Bleak figures from the Centre for Retail Research (CRR) show 130,148 jobs disappeared by mid-November – more than the 119,405 lost over the whole of 2023.
The cuts came as more than 8,500 stores closed down with big names such as The Body Shop shutting sites. Industry experts warn worse is to come in 2025 as retailers are battered by the rising cost of doing business.
Much of the blame is directed at Rachel Reeves, who broke the Labour party manifesto with a £25bn rise in employers’ National Insurance Contributions and pushed through an inflation-busting increase in the minimum wage.
The Chancellor has also come under fire for failing to reform the business rates regime clobbering the High Street. The CRR is set to publish its full annual figures for job losses next week, laying bare the crisis facing the industry.
The issue has been highlighted by the Mail’s Save Our High Streets campaign with household names including B&Q and Currys calling for urgent reform of business rates.
It is feared the National Insurance hike, the higher minimum wage and a rise in the business rates bill will lead to further job losses over the coming 12 months.
Retailers including HMV and The Entertainer have already said they will not open new shops due to higher rates next year.
John Webber, head of business rates at property agent Colliers, said Labour would “finish the High Street” without a change of tack, warning job losses will get worse.
The business rates system is a levy based on the rental value of a commercial property – meaning shops pay a premium compared to online giants such as Amazon.
Before the Budget, bosses called on the Chancellor to extend Covid-era relief schemes which cut business rates bills by 75%.
They also wanted to see the introduction of permanent reforms to the system that would level the playing field. Instead, rates relief for hospitality and retail was cut to 40 per cent.
Reeves also announced plans intended to bring down business rate bills for most High Street stores at the expense of larger commercial premises, which will have to pay more.
The idea is to snare big warehouses used by the likes of Amazon but it could backfire – as the proposals will also hit larger bricks and mortar stores.
Webber said: “Labour has washed their hands of the High Street and are hanging them out to dry. They should hang their heads in shame as they are doing a lot of damage. The route they are travelling down will finish the High Street.”
(Pic: Wiktor Szymanowicz/Anadolu via Getty Images)