Retail chiefs sounded the alarm over rising taxes as it emerged more than half of independent shopkeepers have considered closing this year.
As official figures showed unemployment has soared to a four-year high, the boss of Sports Direct and House of Fraser owner Frasers warned of ‘dark clouds’ on the horizon due to the looming Budget.
And Ocado founder and chief executive Tim Steiner called for ‘lower taxes and less regulation’ to boost growth.
The comments came as an industry survey found over 50 per cent of independent retailers have thought about shutting up shop this year.
And 84 per cent said they lack confidence in the Government to help. Frasers finance chief Chris Wootton said there were ‘dark clouds’ over the next Budget.
The company, which also owns Flannels, Evans Cycles and Gieves & Hawkes, said last year’s Budget hit consumer confidence after it imposed higher National Insurance contributions and a hike in the minimum wage.
Closures: An industry survey found over 50% of independent retailers have thought about shutting up shop this year
And Labour has promised to ‘level the playing field between the High Street and online giants’ by replacing the business rates system.
Ocado boss Steiner said: ‘I think that all businesses and, in fact, all people in the UK should want to see lower taxes and less regulation, because that’s what will create growth.’
A survey by website Save The High Street found that more than half of independent shopkeepers have thought about shutting their business this year.
Jeff Banks, designer and founder of fashion chain Warehouse, said businesses of all sizes are laying off staff.
He added: ‘Taxation is being used as a blunt instrument, driving small businesses out of existence rather than encouraging entrepreneurship and growth.’
There has already been a wave of devastating shop closures and job cuts. Household names including Tesco, Sainsbury’s and Morrisons have axed staff, citing the pressure of higher costs.
At least one in ten retail workers could leave the sector before 2028, amounting to 300,000 staff, claims the Retail Jobs Alliance, which represents big names such as Tesco and M&S.
But it is feared the reality could be even worse, as this estimate does not even include the impact of last year’s Budget, let alone any further hikes this autumn.
Reeves’ raid hammers hospitality
By Hugo Duncan
Taxing times: Restaurants, pubs, cafes and hotels have been hammered by Chancellor Rachel Reeves’s tax hikes
The hospitality industry has lost a ‘devastating’ 84,000 jobs since Rachel Reeves imposed higher taxes at last year’s Budget.
Restaurants, pubs, cafes and hotels have been hammered by increases in national insurance and the minimum wage.
And fears of further job cuts are mounting as firms struggle to stay afloat.
Kate Nicholls of the UK Hospitality trade group, said: ‘These devastating job losses are a direct consequence of policy decisions at last year’s Budget.’
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