TL;DR
Get your next haul delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The British Retail Consortium says higher business rates and employment costs will make it harder for retailers to create jobs, including entry-level roles often taken by young people. The figures and likely effects are the trade body’s assessment; the full impact on hiring has not been established.
The British Retail Consortium has warned that higher business rates and employment costs linked to the Budget could make retailers less able to hire, with young people at risk of losing entry-level opportunities. The trade body argues that rising costs may force businesses to limit jobs or investment, but the extent of any effect on youth hiring has not been confirmed.
BRC chief executive Helen Dickinson said retailers had expected more room to absorb costs after pressure over the past two years. Instead, she said, the Budget would add an estimated £250 million to retailers’ business rates bills next April. The government’s announced measures include taking 70,000 additional small businesses out of business rates and freezing increases for other retailers in real terms. The BRC says bills will nevertheless rise by 3.5 per cent, in line with inflation.
The consortium also estimates that the Budget will add £2 billion in employment costs for retailers, alongside higher wages. It says businesses have already faced £6.5 billion in additional employment costs over the past two years. Dickinson argued that employers may not be able to absorb further costs without reducing jobs or investment. Those figures are the BRC’s estimates; the source report does not provide an independent breakdown of how the totals were calculated.
The concern centres on retail’s role as a route into work. Dickinson said the sector offers young people a first job and experience that can support later careers. The BRC says almost one million young people are not in education, employment or training. The report does not establish how many retail vacancies may be affected or whether businesses have announced specific hiring cuts.
Why Entry-Level Retail Jobs Matter
Retail jobs can provide a first opportunity to gain workplace experience, training and income. If employers respond to higher costs by limiting recruitment, young people seeking their first job could face fewer openings. That is the potential consequence highlighted by the BRC, rather than a confirmed outcome of the Budget.
The issue also puts pressure on the government’s employment aims. The BRC argues that policies intended to improve young people’s readiness for work may be harder to deliver if businesses have less capacity to hire. How costs affect prices, investment and staffing decisions will depend on individual employers and conditions in the sector.
Products Worth Considering
Arlo Pro Wireless Security Camera, 2K HDR, 6th Generation, 4-Camera Kit
Sonos One (Gen 2) Voice-Controlled Smart Speaker, White
LEVOIT Vital 200S-P Smart Air Purifier for Large Rooms
As an affiliate, we earn on qualifying purchases.
Rates and Hiring Costs Behind the Warning
The Budget measures described in the report combine business rates changes with higher employment costs. The Chancellor presented the removal of 70,000 small businesses from rates and a real-terms freeze for other retailers as support. The BRC says those measures do not prevent a 3.5 per cent rise in bills for retailers overall, and that medium and larger outlets will continue to face rates.
The BRC also points to proposed employment-rights reforms and cites the Office for Budget Responsibility’s warning that the reforms could weigh further on the labour market. This is a forecast about potential effects, not evidence that the reforms have already reduced hiring. The report says retailers also face cost pressures from energy and supply chains, but it does not establish how much those factors will alter recruitment.
Before the Budget, Marks & Spencer chief executive Stuart Machin said the employer National Insurance threshold being cut had hit shops because many roles are entry-level and part-time. Retailers have called for the threshold at which employers begin paying National Insurance contributions to be raised, which they say would exempt more young people’s jobs from the payments.
“Retailers want to pay their colleagues well, but there is a limit to what they can absorb without sacrificing jobs and investment.”
— Helen Dickinson, chief executive of the British Retail Consortium
Hiring Effects Are Not Yet Measured
The report does not identify how many young people’s jobs could be lost or not created, nor does it cite retailers announcing hiring reductions in response to the Budget. The BRC’s cost estimates and warnings are attributed to the trade body and should not be read as a measured forecast of job losses.
It is also unclear how individual retailers will respond. Some may absorb costs, alter prices, reduce investment or change staffing in different ways. The source gives no further detail on the precise timing or financial effect of the employment-rights reforms cited by the BRC.
Youth Employment Review Ahead
The source report says Alan Milburn’s review of youth unemployment was due to report soon, but gives no publication date or findings. Its recommendations may add to debate over how to prepare young people for work and whether employers can provide enough opportunities.
The BRC is calling for lower costs associated with hiring young people and an overhaul of business rates. It also supports raising the employer National Insurance threshold. The report says more than 40 retailers have pledged to take part in the Opening Shift initiative, but its excerpt ends before describing the commitments. The government’s response to the BRC’s requests and any subsequent changes to hiring remain unknown.
Key Questions
What are retailers warning about?
The BRC says Budget-related business rates and employment costs could leave retailers less able to hire, including for entry-level roles sought by young people. It has not confirmed a number of jobs that could be affected.
How much does the BRC say retailers’ costs will rise?
The consortium estimates an additional £250 million in business rates next April and £2 billion in employment costs associated with the Budget. These are BRC estimates, not independently verified figures in the source report.
What business rates support did the government announce?
The report says the government plans to remove 70,000 additional small businesses from paying rates and freeze increases for other retailers in real terms. The BRC says retailers’ bills will still rise by 3.5 per cent.
Have retailers announced youth job cuts?
The source report does not cite specific retailers announcing cuts to young workers’ jobs. It reports the BRC’s warning about the risk that rising costs could constrain hiring.
What happens next on youth unemployment?
The report says Alan Milburn’s review of youth unemployment was expected soon, but provides no date or recommendations. The BRC is also pressing for changes to business rates and employer National Insurance costs.
Source: thisismoney.co.uk
