Rachel Reeves’ recent budget decisions are putting major UK retailers at risk, leading to store closures and job losses across the high street.
London: The decline of the high street has been a slow burn, but it’s really heating up now. With more folks shopping online, the situation has worsened. Labour Chancellor Rachel Reeves has made it worse with her recent budget, slapping on billions in new taxes.
The British Retail Consortium is sounding the alarm. They say her hike in employer National Insurance contributions could cost the retail sector a jaw-dropping £2.3 billion. That’s not just a number; it’s a serious hit to businesses already struggling with the pandemic’s aftermath and rising living costs.
Last year, over 70 big-name companies, including Sainsbury’s and Tesco, wrote to Reeves, warning her about the impending disaster. But it seems their cries for help fell on deaf ears.
On top of the NI increase, she’s also raising the national minimum wage significantly. While it sounds good on paper, it’s pushing high-street shops closer to the edge.
We’re seeing shops close down one by one. Sainsbury’s just announced it’s shutting all 61 of its cafés and some fresh food counters, which means 3,000 job losses. That’s heartbreaking.
WHSmith, a staple on the high street for over 230 years, has closed 18 stores this year and might sell off all its remaining locations. They’re even looking abroad for better opportunities.
Just last month, I was at Oslo Airport and saw two shiny new WHSmith stores right next to each other. Meanwhile, they might not have a single store left in the UK soon. It’s a tough place to do business now.
Even JD Wetherspoon is eyeing overseas options after facing nearly £60 million in extra costs. Other brands like New Look and Poundland are also shutting down shops at an alarming rate.
Greggs, once a booming bakery chain, is feeling the pinch too. Sales are slowing as people tighten their belts, and with 30,000 staff, their costs are climbing.
JD Sports has also spoken out against Reeves’ budget, saying it’s just too much for British businesses to handle. It’s like she’s a one-woman pandemic for the retail sector.
The Centre for Retail Research predicts around 17,350 retail sites will close this year, a shocking increase from last year. They’re forecasting over 200,000 job losses in total.
By raising the costs of running stores and squeezing household budgets, Reeves has created a perfect storm for businesses. You can see the impact everywhere you go.
Sure, online shopping is a big part of the problem, but it’s baffling why Reeves decided to target high street retailers for a tax hike. Her policies seem to be pushing them towards extinction.
