High street faces 17,000 MORE closures in 2025 ahead of Labour’s looming tax raid as experts warn ‘worse is yet to come’
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A STAGGERING 17,350 shops could shutter this year because of Labour’s tax-whacking Budget, economists have warned. Experts braced Britain for a high street cull far beyond the 13,000 stores that closed during 2024. The Centre for Retail Research said there was “worse to come” in the next 12 months as firms struggle to stay afloat.
![[Rachel Reeves' controversial Budget has been blamed for the closures]](https://www.thesun.co.uk/wp-content/uploads/2024/12/chancellor-rachel-reeves-speaks-media-958647337_ff489f.jpg?strip=all&w=960)
Rachel Reeves’ decision to hike National Insurance for bosses, increase wage costs and lack of business rates relief have been blamed for the grim outlook. The CRR’s Prof Joshua Bamfield, said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”.
![[17,000 shops are expected to close this year]](https://www.thesun.co.uk/wp-content/uploads/2025/01/image_b55ef6.png?strip=all&w=960)
Of the 17,350 forecast to close, around 14,660 are expected to be smaller, independent retailers. Although major chains including Ted Baker, Homebase and Carpetright also shut stores after going insolvent during the year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28 per cent increase on the previous year.
Commercial real estate firm Altus Group said the cut in the business rates discount from 75% to 40% in April announced at the 2024 autumn budget, will see the average shop’s rates bill spiral from £3,589 to £8,613 for 2025/26. The Chancellor also increased costs for bosses through hikes to their National Insurance Contributions from 13.8 to 15 per cent.
