Britain’s struggling high streets have lost almost 170,000 retail jobs this year – the biggest annual toll since the pandemic lockdowns in 2020 – as stores struggle with higher taxes, rising costs and weakening consumer spending.
Figures from Altus Group and the Center for Retail Research (CRR) show that job losses are up 42 percent from 2023, bringing the total so far this year to 169,395.
High-profile administrations at The Body Shop, Ted Baker, Homebase, Carpetright and Lloyds Pharmacy underline the increasing pressure on retailers. According to CRR director Joshua Bamfield, government caution on the economy has further eroded consumer confidence, forcing households to tighten their budgets.
Retailers are preparing for a tough 2025, in which more than 200,000 additional positions are expected to disappear. Two looming policy measures – a reduction in business rate cuts and a sharp increase in employer national insurance contributions (NICs) – threaten to hit the sector with a double blow this spring.
Altus Group calculates that retailers’ annual business rates will rise by £688m if the current 75 per cent discount falls to 40 per cent, while Chancellor Rachel Reeves plans to increase NICs for employers from 13.8 per cent to 15 per cent and lower the threshold. up to £5,000, adds even more pressure. Bamfield warns that part-time workers, who make up half the retail workforce, will bear much of the impact.
The latest data from the Office for National Statistics shows that there are currently 3.6 million people employed in retail, wholesale and car repair – up from more than 4 million in 2019. November retail sales remain 1.6 per cent below pre- the pandemic, and Boxing Day visitor numbers have fallen by almost 5 percent compared to the same day last year, according to MRI Software.
The Treasury has defended its approach, insisting that the 40 per cent reduction in business rates will remain in place for 250,000 properties, and a permanent lower rate will be introduced in 2026. It also notes that more than half of employers will see no change or no change at all. reduction of their NIC bill.