High Street braces for worst year since pandemic

More than 550 retail jobs will be lost a day in 2025 as companies struggle with the Rachel Reeves budget.

Grim forecasts from the Center for Retail Research (CRR) suggest Labor’s trade policies could be even deadlier than the pandemic for the High Street.

The CRR predicts that up to 202,000 jobs could be lost next year due to rising business rates and labor costs. The worrying new data comes after the Mail revealed that, as of mid-November, more than 400 retail jobs had been lost every day this year.

The sector is set to take a £7bn hit from Labour’s spring decisions. Retailers have warned this will result in lower wages, fewer staff and higher prices. Companies are already struggling with a total of 169,395 retail jobs lost this year, an increase of 41.9 percent compared to 2023.

Some 38 major retailers have fallen into administration this year, including Lloyds Pharmacy, Homebase and The Body Shop.

Centre’s Professor Joshua Bamfield said: “Issues of changing customer shopping habits, inflation, rising energy costs, rents and business rates forced many retailers to cut back further. “.

And he warned that 2025 could be even worse. “By increasing store operating costs and costs in each consumer’s home, we are very likely to see retail job losses dwarf the height of the pandemic in 2020.”

The Chancellor has also been criticized for failing to reform the business rates regime plaguing the high street.

Alex Probyn, of property adviser Altus Group, said: “The reduction in business discount rates from April 1 will disproportionately impact independent retailers.”

The issue has been highlighted by the Mail’s Save Our High Streets campaign, in which major retailers are calling for urgent business rates reform.