Retailers are warning that over the next three years some 300,000 retail workers will lose their jobs as result of the “choices Labour have made.”
A campaign group called the Retail Jobs Alliance (RJA) have warned of a “perfect storm” as business rates are hiked along more red tape meaning there will be job losses.
The RJA members include B&Q owner Kingfisher, Asda, Morrisons and Primark and Marks & Spencer, Tesco and Sainsbury’s have warned the industry is now at risk.
During the Autumn Budget on 30 October 2024 the Chancellor Rachel Reeves announced that employers will pay more for national insurance contributions, therefore the real forecast will be far worse than previously predicted.
Retailers have said the changes Reeve’s made in her Budget will increase their costs by around £7 billion.
Rami Baitieh, chief executive of Morrisons warned, “Supermarkets are grappling with rising costs and steep taxes.
“Now we face the prospect of even higher business rates.
“We’d urge the Government to rethink its plans and protect all shops from a damaging new rates hike which would hit jobs and the high street.”
Andrew Griffith, Shadow Secretary of State for Business and Trade said: “Retail businesses are facing an onslaught from the Government.
“Business rates hikes, 1970s-inspired employment laws and tax rises simply for employing staff will see the shutters closed forever on thousands of shops.
“The choices Labour have made will directly lead to job losses, with the worst impacts felt in the most disadvantaged communities.
“Is this the ‘Change’ people voted for?”
A Treasury spokesman said, “We’re levelling the playing field for high street businesses by permanently cutting business rates and removing the £110,000 cap for over 280,000 retail, hospitality and leisure business properties, while also capping corporation tax for the duration of parliament.
