Rachel Reeves horror budget will worsen 300,000 jobs ‘bloodbath’, retailers warn

A jobs bloodbath will hit 300,000 retail workers in the next three years in a massive blow for plans to revive town centres.

Retailers, including Marks & Spencer, Sainsbury’s and Tesco, have warned the future of the industry is in jeopardy.

The Retail Jobs Alliance (RJA), a campaign group whose members also include Asda, Primark, B&Q owner Kingfisher and Morrisons, say a “perfect storm” of higher costs and red tape meant they expected one in 10 supermarket or high street workers are at risk.

The real picture will be worse as the forecast was made before the Chancellor’s national insurance raid in the Budget.

Rami Baitieh, chief executive of Morrisons, said: “Supermarkets are grappling with rising costs and steep taxes.

“Now we face the prospect of even higher business rates.

“We’d urge the Government to rethink its plans and protect all shops from a damaging new rates hike which would hit jobs and the high street.”

Andrew Griffith, Shadow Secretary of State for Business and Trade said: “Retail businesses are facing an onslaught from the Government.

“Business rates hikes, 1970s-inspired employment laws and tax rises simply for employing staff will see the shutters closed forever on thousands of shops.

“The choices Labour have made will directly lead to job losses, with the worst impacts felt in the most disadvantaged communities.

“Is this the ‘Change’ people voted for?”

The retailers which are part of the RJA employ just under a third of those working in the sector, equal to almost one million people.

It comes as the campaign group re-established itself amid fears over looming higher property taxes for many large city centre stores, on top of rising worker costs.

In her Halloween Budget, Ms Reeves said she was increasing the rate of National Insurance contributions paid by employers and lowering the threshold by which companies have to pay it, as well as raising the national minimum wage.

Retailers have suggested these worker changes and a new recycling levy will push up their costs by about £7billion.

However, high street bosses said they risked even higher costs amid a planned shake-up of the business rates system by the Government.

Under the proposals, the Treasury is planning to increase tax rates for large properties and lower them for small stores.

Ministers have said this is part of their drive to “breathe life” back into the high street.

Retail giants this week said the business rate plans threatened to hamper retail investment in the UK, lead to store closures and ultimately mean more workers leave the sector.

A Treasury spokesman said: “We’re levelling the playing field for high street businesses by permanently cutting business rates and removing the £110,000 cap for over 280,000 retail, hospitality and leisure business properties, while also capping corporation tax for the duration of parliament.”