MERKUR UK General Manager Sascha Blodau has highlighted the consequences facing Britain’s high streets should Chancellor Rachel Reeves raise business taxes in her Autumn Budget.
As leading business groups argue that government policy is driving up inflation and forcing brands to close stores Sascha Blodau said: “Iceland, Poundland and New Look are among the major retailers to have announced store closures in recent months contributing to the 100,000 retail jobs that have been lost in a year.”
“Empty or boarded-up shops are simply killing the high street. Anything that impacts visitation is extremely damaging for every single high street business.”
A survey undertaken by the British Retail Consortium showed that 56% of Finance Directors representing over 9,000 stores said they were pessimistic about the future, with 38% reducing investment and the same proportion reducing job numbers in-store.
Underlining the challenge facing the high street, Blodau confirmed: “Large stores not only account for hundreds of thousands of retail jobs, but they also play a vital role in attracting visitors to high street destinations.
“There are fewer Adult Gaming Centres (AGCs) on the high street than pre-Covid and £300m less is being spent/year on machines. Unlike our brick and mortar neighbours, AGCs cannot increase their prices and it’s clear that the gaming entertainment sector would be disproportionately damaged by any increase in business taxes.”