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High street shops plan to cut hours as new tax changes hit businesses

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UK retail and hospitality sectors prepare for major changes due to employer tax increases starting next spring. Business owners look at shorter work-days and reduced staff hours as costs rise

UK high-streets face a tough future with many shops planning shorter work-days next spring (when employers tax rates jump from 13.8pc to 15pc)

Rachel Reevesʼs budget changes make business owners re-think their work schedules — forcing them to look at shorter opening hours and less working days. Luke Johnson who runs Gailʼs bakery points out that higher business costs speed-up the decline of city centres

The night-time sector shows biggest concerns; about 40pc of bars and clubs might close by mid-2025. Michael Kill who leads Night Time Industries Association says these changes hurt UK businesses badly

The autumn Budget has effectively signed a death sentence for many night-time economy businesses across the UK; this sector is being pushed to the brink

Michael Kill‚ NTIA chief executive

Andrew Goodacre who speaks for 8500 independent shops says his members will make big changes:

  • Cut staff hours
  • Lower employee numbers
  • Reduce shop open times

Restaurant group leader Alan Morgan (who runs over 220 places like Bella Italia and Cafe Rouge) tells that nothing is off-limits when looking at cost savings. Many pubs already think about working less hours; three-quarters plan staff time cuts

The Treasury defends its choices saying they need to fix a £22bn budget gap left by previous government. They promise some help: 40pc business rates cut next year and permanent rate changes by 2026 — but shop owners dont think its enough to stop the coming changes

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