Towns and cities across Britain are already witnessing a wave of closures as independent businesses shut their doors ahead of April's triple tax burden, the UK's leading retail body has warned.
The British Independent Retailers Association (Bira), which represents 6,000 independent businesses nationwide, reports that many shop owners are making the heartbreaking decision to close now rather than face the financial cliff-edge coming in April.
Andrew Goodacre, CEO of Bira said, "We're seeing a deeply concerning trend of preemptive closures.
"Shop owners are doing the maths on the increased National Insurance contributions, higher minimum wage costs, and the looming reduction in business rates relief, and many are concluding that continuing simply isn't viable."
The combined impact of employers' National Insurance rising to 15%, the minimum wage increasing to £12.21, and business rates relief dropping from 75 per cent to 40 per cent is creating what Bira describes as a "perfect storm" for independent retailers.
With approximately 13,000 shops closing their doors in 2024, and forecasts suggesting this could rise to as many as 17,000 closures in 2025, the scale of the crisis facing British high streets is unprecedented in recent times.
"These aren't just statistics – they're family businesses that have often served their communities for generations," Goodacre added. "We're particularly alarmed by the number of retailers telling us they're closing now to avoid accumulating further debt before the April changes take effect."
The association warns that this trend could accelerate in the coming weeks, creating empty units across Britain's high streets and fundamentally altering the character of town centres.
Goodacre added, "If the government doesn't recognise these early closures as the death knell for our high streets and take immediate action, we risk losing the diverse, independent businesses that make our communities unique.
"The economic and social cost of these closures will far outweigh any short-term tax gains."
Bira is calling for an urgent review of the planned tax changes and additional support measures for small retailers to prevent what it describes as an "devastating blow" for independent high street businesses.
Various retail and wider industry bodies are warning the government over the upcoming rise in costs for businesses at multiple fronts.
Commenting on the modest growth in sales in Ferbruary, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, "The industry is already doing all it can to absorb existing costs, but they will be left with little choice but to increase prices or reduce investment in jobs and shops, or both.
"The focus of the Employment Rights Bill should be on unscrupulous employers but instead the industry faces ongoing uncertainty and a trajectory that risks punishing responsible businesses who provide valuable employment, particularly at entry level. It is time for government to course correct to ensure investment and growth are not undermined.”
