Britain’s biggest retailers have warned that at least 300,000 high street jobs could be lost by 2028 due to the Chancellor’s tax hikes and business rates reforms.
Seven major retail chains, including Marks & Spencer, Tesco and Sainsbury’s, have united to challenge Rachel Reeves’ Budget changes, which they claim will trigger devastating store closures across the country.
The stark warning comes as new research predicts more than 15,000 stores will close in 2025 alone, marking a dramatic increase of the high street crisis.
The retailers, operating under the Retail Jobs Alliance (RJA), say they face “a perfect storm of additional costs” from April.
High streets have been hit by a wave of store closures in the last 10 yearsPAUnder the RJA banner, B&Q-owner Kingfisher, Morrisons, Primark and Asda have joined forces with M&S, Tesco and Sainsbury’s to demand changes to the proposed reforms.
The alliance’s warning suggests one-in-ten retail workers could exit the sector before 2028.
The group is particularly concerned about protecting shops from higher business rates, arguing this “would provide much-needed relief for at-risk stores, enabling them to reinvest in their businesses, retain staff, and grow their footprint on the High Street.”
The Budget changes include a £25billion increase in national insurance and an inflation-busting rise in the minimum wage.
Labour has promised to reform the business rates system, but retailers warn their plans would hit over 4,000 brick-and-mortar shops. The Chancellor has delayed introducing a new business rates system until 2026 at the earliest.
Smaller retailers face thousands of pounds in additional costs from April due to reduced Covid-era relief.
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Helen Dickinson, British Retail Consortium chief, warned that Reeves’ Budget adds over £7billion to retailers’ bills in 2025, forcing “difficult decisions about future investment.”
Industry leaders have issued stark warnings about the impact of the Budget changes.
Rain Newton-Smith, Confederation of British Industry chief executive called for “decisive action” including urgent reform of the “punishing business rates system.”
Michael Kill, chief executive of the Night-Time Industries Association, warned that without “wholesale reform” of business rates, town and city centres would be left decimated.
The retail sector has already seen thousands of job losses this year at major supermarkets. The fate of more jobs hangs in the balance at retailers including WH Smith and Quiz.
The scale of the high street crisis is further highlighted by data showing the lasting impact of previous retail collapses. A quarter of former Debenhams and Arcadia stores remain empty five years after their collapse, according to property consultancy Green Street.
Of Philip Green’s former Arcadia empire, 125 of 459 shops – 27 per cent – still lie vacant. Similarly, 35 of 142 former Debenhams locations remain unoccupied.
The alliance’s warning suggests one in ten retail workers could exit the sector before 2028
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The predicted closure of 15,000 stores in 2025 represents more than double the 7,000 shutdowns recorded last year, according to research by Coresight.
Major retailers have already announced significant closures, with Walgreens set to close 333 locations and 7-Eleven shuttering 148 stores.
While 5,800 new physical stores are expected to open across the country, the first two weeks of 2025 have already seen 1,900 planned closures.
Retail banks are also facing pressure, with experts projecting a further 4.11 percent decrease following the 1,000 branches closed last year.
Aldi offers a rare bright spot, announcing plans for 170 new grocery stores this year.