What: More than 100,000 retail jobs could be lost due to a proposed hike in business rates, according to industry groups.

Why it is important: he warning highlights the direct impact of government policy on retail employment and the viability of high street businesses.

Industry groups have issued a stark warning that a proposed increase in business rates could put over 100,000 retail jobs at risk, underscoring the precarious position of the sector amid rising operational costs. The potential hike would significantly affect the ability of retailers to sustain employment and maintain their presence on the high street, where many businesses are already grappling with economic pressures. This threat comes as department stores and supermarkets face mounting costs, with some, like Beales, forced to close due to unsustainable financial burdens. The prospect of higher business rates has also led major retailers to reconsider expansion plans, while a surge in layoffs has already been observed as companies adjust to the challenging environment. The situation has prompted calls for government intervention, with a recent £5 billion investment in high streets aiming to counteract the negative effects and support local economies. The debate over business rates thus remains central to the future of retail employment and the health of high street communities.

IADS Notes: The Industry in September 2025 reported that department stores and supermarkets are bracing for significant cost increases from business rates, threatening their role as high street anchors. Retail Week in July 2025 highlighted Frasers Group’s warning that a £1.7 billion rates hike could halt store expansion. Drapers in February 2025 detailed Beales’ closure due to reduced relief and higher costs, while Forbes in March 2025 noted a surge in retail layoffs. In response, Retail Week in September 2025 covered the government’s £5 billion high street investment to support local retail and employment.

UK retail bodies say over 100,000 jobs at risk if chancellor hikes business rates