UK High Street Faces Record Job Losses Amid Economic Struggles

The UK high street has experienced its biggest annual job losses since the pandemic, shedding nearly 170,000 retail positions in 2024, as shops continue to battle with rising taxes, escalating costs, and weakening consumer demand.

According to data from Altus Group and the Centre for Retail Research (CRR), the total number of retail job losses this year has reached 169,395, marking a 42% increase from 2023. The ongoing strain has been highlighted by the high-profile closures of major retailers including The Body Shop, Ted Baker, Homebase, Carpetright, and Lloyds Pharmacy, all of which have struggled under the mounting economic pressures.

Joshua Bamfield, director of CRR, attributed the job losses to a combination of higher operational costs, inflationary pressures, and government caution regarding the economy, which has eroded consumer confidence and led to tighter household budgets. “Consumers are becoming more cautious, and retailers are feeling the squeeze,” Bamfield explained.

Retailers are now bracing for an even tougher 2025, with forecasts predicting that an additional 200,000 jobs could be lost as a result of new policy measures. Two key upcoming changes are expected to significantly impact the industry: a reduction in business rate relief and a sharp increase in employers’ National Insurance Contributions (NICs).

Altus Group estimates that business rates will rise by £688 million annually when the current 75% discount drops to 40%. Meanwhile, Chancellor Rachel Reeves’s plan to raise NICs from 13.8% to 15% and lower the threshold to £5,000 is expected to add further financial strain on retailers, particularly affecting part-time workers, who make up half of the retail workforce.

Recent data from the Office for National Statistics reveals that retail employment has fallen to 3.6 million, down from over 4 million in 2019. November’s retail sales volumes were also 1.6% below pre-pandemic levels, and Boxing Day footfall was nearly 5% lower than in 2023, according to MRI Software.

Despite these challenges, the Treasury has defended its economic measures, arguing that 40% business rates relief will remain in place for 250,000 properties, and a permanent lower rate will be introduced in 2026. The government also emphasized that over half of employers will either see no change or a reduction in their NICs bill.

As the retail sector faces continued adversity, the coming months will be crucial in determining whether these measures can help stabilize the industry or whether more significant disruptions lie ahead.