Britain’s largest retailers have raised alarms about the future of the high street, predicting the loss of at least 300,000 jobs in the next three years. This significant reduction in workforce is set to have a major impact on the government’s plans to revitalize town and city centers.
Retail giants including Marks & Spencer, Sainsbury’s, and Tesco have warned that a combination of rising costs and increasing regulatory pressures could lead to the loss of one in ten shop floor workers by 2028. The Retail Jobs Alliance (RJA), a group representing major retailers like Asda, Primark, Kingfisher, and Morrisons, estimates the number could exceed 300,000, depending on the impact of recent budget changes.
While the RJA members employ nearly a million people, the group has voiced concerns over the government’s recent tax policies. These changes, including increased National Insurance contributions for employers and a new recycling levy, are expected to add around £7 billion to retailers’ costs. Retailers also fear the planned overhaul of business rates, which will raise taxes for large stores and lower them for smaller ones, could lead to further closures and additional job cuts.
According to the RJA, the changes could have a disproportionate impact on stores in less affluent communities, with thousands of retailers potentially facing severe financial strain. At the same time, consumer demand remains weak, as households continue to face high essential bills and subdued spending on non-food items.
Tesco’s CEO, Ken Murphy, emphasized the risk of town center stores becoming unviable due to the increased tax burden, while Sainsbury’s CEO, Simon Roberts, called on the government to ensure the ongoing viability of these critical locations.
In response, the RJA is urging the government to exempt large stores from the higher business rate multiplier, which is used to calculate taxes based on property value. This exemption would allow stores to reinvest in their businesses, retain staff, and maintain their presence on the high street.
Opposition parties have voiced strong criticism, with Andrew Griffith, the shadow business secretary, warning that the government’s tax hikes and employment laws could lead to permanent store closures, particularly in disadvantaged communities.
In defense, a Treasury spokesperson stated that the recent budget is designed to stimulate economic growth, focusing on cutting business rates and supporting the retail, hospitality, and leisure sectors.
Despite these measures, the future of UK retail remains uncertain as rising costs and shifting tax policies continue to pose challenges to the sector.
Stay tuned to London Pulse News for further updates on the challenges facing the UK retail sector and how government policies may shape the future of high streets and employment across the country.
