The closure of one of Britain's oldest department stores due to recent tax rises signals a "devastating new chapter" for Britain's high streets, the country's leading retail body has warned.
Beales, a 143-year-old retail institution that opened its doors in Bournemouth in 1881, has announced the closure of its final remaining store in Poole's Dolphin Centre by the end of May, blaming increased tax burdens introduced in last October's Budget for making the business unviable.
"We are deeply saddened to learn of Beales' closure. This is not just the loss of another shop – it represents the end of a retail institution that has served communities for nearly one and a half centuries," said Jeff Moody, Commercial Director of the British Independent Retailers Association(Bira). "This closure starkly illustrates the devastating impact that recent tax increases are having on our retail sector."
Beales' announcement follows the Chancellor Rachel Reeves's October 2024 Budget, which introduced significant increases in employers' National Insurance contributions from 13.5 per cent to 15 per cent, alongside a rise in the minimum wage to £12.21 per hour for workers aged 21 and over.
Tony Brown, Beales' chief executive, confirmed that these tax rises, combined with the uncertainty of future increases, have made the business "unviable". The closure will be managed to ensure no suppliers face financial losses, though it marks the end of an era for British retail.
Bira, which represents 6,000 independent traders across the UK, has warned that this closure could be the first of many as retailers struggle with mounting costs.
Recent Bira survey data shows that 46 per cent of retailers reported worse trading conditions in early 2024 compared to the previous year, with confidence levels remaining low for the second quarter.
Mr Moody added: "The closure of Beales is, tragically, unlikely to be an isolated incident. With the reduction in business rates relief from 75 per cent to 40 per cent set for April 2025, alongside these other tax increases, many of our members are facing impossible decisions about their future. This is a critical moment for British retail, and we urgently need policy makers to recognise the devastating impact their decisions are having on our high streets."
Bira is currently in discussions with government departments to address the impact of these changes and develop a fairer business rates structure.
