High Streets Face a “Jam Tomorrow” Future: Jobs in Jeopardy & Rising Taxes
The high‑street economy is on the edge, with around 27,000 jobs already lost or threatened in the first quarter of the year. It’s a situation that feels as bleak as the threat of a sticky jam that never comes.
Why the Jobs Are at Risk
- Recessionary pressure on retail, leisure and hospitality sectors.
- Shifts in consumer behaviour to online shopping.
- Stiff competition from large e‑commerce retailers.
The Chancellor’s Tax Strategy
The Chancellor opted to slash the 75 % business‑rates discount that small high‑street shops had enjoyed until now, bringing it down to 40 % for the £2025/26 financial year. This move is projected to:
- Cost retailers, leisure and hospitality firms an extra £1.03 billion starting 1 April 2025.
- Reduce the Chancellor’s intake by £2.41 billion to £1.38 billion in London alone.
- Shift the tax burden to the biggest ratepayers, planning to save an additional £1.4 billion in 2026.
Impact on Local Councils and Devolved Nations
Across England, councils are expected to collect £27.8 billion in business rates for 2025/26, a 5.7 % rise from the previous year. Two‑thirds of this increase stems from the reduced discounts for local businesses.
Meanwhile:
- Scotland, Wales and Northern Ireland retain control over property taxes.
- Financial support for UK businesses continues to be balanced against the new tax structure.
What It Means for the Everyday Consumer
While the policy aims to streamline national revenue, it could mean higher costs for the average shop owner. That may translate to slightly more expensive everyday items at your local supermarket or coffee shop.
As we navigate this economic maze, one thing is clear: the high streets are fighting a rough battle, but as with any jam, there might be a recipe for success if the right ingredients are mixed.
