Sunday, December 22, 2024

Shops and restaurants to cut opening hours after National Insurance raid

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Ms Nicholls warned that the Budget “jeopardises full-time, full-service high streets and investment in them”.

Clive Black, an analyst at Shore Capital, said the extra costs would “undoubtedly be a blow to high streets and shopping centres”.

He added: “Quite a few shops close Monday already. I would not be surprised to see owners also looking at other demonstrably quiet times too, say Tuesday.”

Billions of pounds have been wiped off the value of the shares of high street employers since the Budget amid concerns over the looming cost increases. The retail and hospitality sectors are the first and third-biggest employers in the UK.

The NTIA said “relentless cost increases” meant 40pc of businesses in the night-time economy faced closure within the next six months without urgent support. The group represents bars, pubs and clubs with late opening hours.

Its members are in “severe jeopardy” following the Budget, NTIA warned.

Mr Kill, the group’s chief, said: “The Government’s ‘pro-growth’ claims ring hollow in the face of policies that are, in reality, crippling the very industries that drive economic vitality, social cohesion and cultural richness.”

Three-quarters of late-night venues expect their operating bills to rise by more than £30,000 this year, with tax playing a hard part in the jump.

The Chancellor has defended her decision to increase taxes on businesses by insisting that “difficult decisions” must be taken to fix public finances.

A Treasury spokesman said. “With our public services crumbling and an inherited £22bn fiscal black hole from the previous government, we had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability to allow businesses to thrive.

“More than half of employers will either see a cut or no change in their National Insurance bills, and to support the hospitality industry we’re permanently cutting business rates for every shop on the high street from 2026 alongside a 40pc relief on business rates bills next year for thousands of premises.

“This Government is committed to delivering economic growth by boosting investment and rebuilding Britain.”

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