Retail sector sheds approximately 400,000 jobs over the past decade: High Street executives fear businesses are being 'overburdened with taxes'
The British Retail Consortium (BRC) and UK Hospitality have issued warnings about the potential impact of further tax hikes in the upcoming Autumn Budget on November 26, 2022.
Helen Dickinson, the Chief Executive of the BRC, has warned that further tax increases could drive up prices and negatively impact retail employment. She stated that the jobs figures are a "stark warning" to Chancellor Rachel Reeves ahead of the Autumn Budget.
In the past decade, nearly 400,000 retail jobs have been lost, and the sector currently employs 2.78 million people, a decrease of 97,000 compared to the same period last year. Major retailers such as Tesco, Morrisons, and Currys have axed jobs following last year's increases to employer National Insurance, the National Minimum Wage, business rates, and packaging taxes.
Giles Hurley, the boss of Aldi UK, also warned Chancellor Rachel Reeves that further tax hikes could lead to higher food prices for shoppers. Similar concerns have been expressed by UK Hospitality, with pubs, restaurants, and other venues struggling. The hospitality industry has lost 84,000 jobs since the Budget.
Retailers have been hit by £7 billion in higher costs due to the Chancellor's Budget last year. Several retailers, including fashion brands Quiz, Seraphine, and accessories seller Claire's, have collapsed.
The BRC and UK Hospitality have urged the Chancellor to consider business operating costs carefully before implementing any new tax hikes. They fear that further increases could exacerbate the current challenges facing the retail and hospitality sectors.
The BRC warned that "worse could be yet to come" for the retail sector, suggesting that the impact of higher costs could continue to be felt in the coming months. The warnings come as the retail sector prepares for the busy holiday shopping season.
In conclusion, the retail and hospitality sectors are bracing for the potential impact of further tax hikes in the upcoming Autumn Budget. The warnings from the BRC and UK Hospitality highlight the importance of considering the impact of policy decisions on businesses and employment in these sectors.
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