Conservative leader Kemi Badenoch has launched a scathing attack on the Government, accusing it of a "shameful assault" on the British high street as a wave of closures and administrative collapses continues to sweep across the nation.
Political Blame and Economic Pressure
In a recent interview with the Express, Badenoch placed the blame squarely on the Labour Party, citing its JobsTax and escalating business rates as primary culprits behind the struggling retail sector. She argued that these policies are creating an unsustainable environment for businesses.
"This Government is hammering our high streets out of existence," Badenoch stated emphatically. "I've spoken to businesses across the country, all of whom say that Labour's endless tax rises and red tape are making it so much harder for them to stay afloat. This is a shameful assault on the very heart of so many communities, and it cannot continue."
A Recent Spate of Retail Collapses
Highlighting the immediacy of the crisis, Badenoch pointed out that just in the last few weeks, four major companies have fallen into administration, leaving both employees and shoppers distraught. Notable retailers such as Quiz, Game, LK Bennett, and The Original Factory Shop have faced significant blows, with some already announcing closures following shock administration announcements.
Committee Warnings and Statistical Evidence
The situation appears dire, with the Business and Trade Committee inquiry warning that small businesses are currently facing pressures even worse than those experienced during the Covid-19 pandemic. Liam Byrne, chair of the committee, emphasised the need for a "more coherent and ambitious plan" to support businesses through these challenging times.
Supporting data reveals the scale of the issue: evidence from Sage reported that 38 stores closed each day on Britain’s high streets in 2024. Furthermore, the Federation of Small Businesses estimates that tax compliance costs small and medium-sized enterprises (SMEs) a staggering £25 billion each year, adding a significant financial burden to already strained operations.
The Broader Impact on Communities
This ongoing crisis extends beyond mere business statistics, striking at the core of local communities where high streets serve as social and economic hubs. The closures not only affect retail diversity but also impact employment, local economies, and the cultural fabric of towns and cities across the UK.
