Recent weeks have seen a wave of shop closures as independents shut their doors ahead of April’s triple tax burden, the British Independent Retailers Association (Bira) has warned.
The Association reports that many shop owners are making the heartbreaking decision to close now rather than face the financial cliff-edge coming in April.
“We’re seeing a deeply concerning trend of pre-emptive closures,” says Andrew Goodacre, ceo of Bira. “Shop owners are doing the maths on the increased National Insurance contributions, higher minimum wage costs, and the looming reduction in business rates relief, and many are concluding that continuing simply isn’t viable.”
The combined impact of employers’ National Insurance rising to 15%, the minimum wage increasing to £12.21 and business rates relief dropping from 75% to 40% is creating what BIRA describes as a ‘perfect storm’ for independent retailers.
With approximately 13,000 shops closing their doors in 2024 and forecasts suggesting this could rise to as many as 17,000 closures in 2025, the scale of the crisis facing British high streets is unprecedented in recent times.
“These aren’t just statistics – they’re family businesses that have often served their communities for generations,” continued Andrew. “We’re particularly alarmed by the number of retailers telling us they’re closing now to avoid accumulating further debt before the April changes take effect.”
The Association warns that this trend could accelerate in the coming weeks, creating empty units across Britain’s high streets, altering the character of town centres. It is calling for an urgent review of the planned tax changes and additional support measures for small retailers to prevent what it describes as a ‘devastating blow’ for independent high street businesses.
States Andrew: “The economic and social cost of these closures will far outweigh any short-term tax gains.”
