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