UK high street faces mass closures by early 2025

The UK's high street is facing a significant crisis as major brands continue to close at an alarming rate. From March 31, 2025, businesses will experience a substantial increase in tax bills due to the expiration of the current relief scheme. This change is expected to impose an additional £110,000 in taxes on many establishments, leading to fears of widespread closures, particularly among pubs, restaurants, and hotels. The hospitality sector alone could see a total tax increase of £928 million, which has raised concerns among business owners about their ability to survive in the post-Covid economy. Roxane Marjoram, a pub co-owner, expressed her anxiety over the potential quadrupling of rates bills, emphasizing the need for fair rates to support economic recovery. UKHospitality has called for a permanent reduction in business rates to provide much-needed stability for the sector. The Chief Executive of UKHospitality, Kate Nicholls, highlighted the unsustainable nature of the impending tax increases, warning that many businesses may be forced to downsize or close entirely. Recent statistics reveal that in the first half of the year, nearly 7,000 shops belonging to chains exited the high streets, equating to 38 closures per day. This trend has resulted in the loss of approximately 15,359 jobs, raising alarms about the future of retail and hospitality in the UK. The silence from the government regarding potential solutions ahead of the October budget has left many in the industry anxious about their prospects. As the deadline for tax increases approaches, the urgency for a viable solution grows. Without intervention, the high street may face irreversible damage, impacting not only businesses but also local economies and communities reliant on these establishments for employment and services.