UK excessive avenue on verge of apocalypse as a whole lot of main manufacturers might shut

The high street is on the verge of an apocalypse as hundreds of major brands could close en masse very soon.

From March 31, 2025, businesses are going to be slapped with a huge rise in tax bills, as the current relief scheme brought in by the previous government ends. And with no replacement being mused by the new Labour-led government at all, it could see many businesses shut their doors rather than face a potential increase of £110,000 in tax.

According to UKHospitality – who are calling for a permanent lowering of the rate – a seaside hotel could be landed with such a rise, while high street stores and pubs will also be facing huge rises.

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It’s expected that the entire hospitality industry could be facing a grand total tax increase of a whopping £928million. Roxane Marjoram, who co-owns several pubs in and around Suffolk with husband David, said the potential quadrupling of rates bills fills her “with dread”.

“Even though we’re operating in an environment with significantly higher costs post-Covid, pubs and restaurants like ours can and will play a strong part in economic recovery going forward, if we’re supported with fair rates bills.

“A new lower, permanent and universal business rates multiplier for the whole sector, as proposed by UKHospitality, will help give us much-needed certainty looking forward.”

And Kate Nicholls, Chief Executive of UKHospitality, said: “The scale of this almost billion-pound tax bombshell is just not viable. Many will face risk of closure, be forced to let people go to stay afloat, or shelve their investment plans.

“There has to be a solution that avoids this cliff edge, and a lower, permanent and universal multiplier for hospitality would deliver that.”

According to Price Waterhouse Cooper – or PwC to most of us – in the first six months of this year, a total of 6,945 shops belonging to multiples and chains (those with five or more outlets) exited Great Britain’s high streets, shopping centres and retail parks, equivalent to 38 shops per day.

So far, around 15,359 employees have lost their jobs this year alone, the Centre for Retail Research claims – leaving many worried about the silence from the Government on the issue ahead of it’s October budget, with many expecting tax rises across the board.

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