Following the Chancellor’s Autumn Budget a major retailer has confirmed they will be closing stores as a result of Labour’s “tax on jobs.”
Shoe Zone employs 2,250 workers and has 297 stores across the UK and there will be store closures due to Rachel Reeves employer’s national insurance and minimum wage hike, making this the first retailer to close stores due to Labour’s tax raid.
During the Autumn Budget the Chancellor announced the employers will now pay 15% for employers national insurance contributions from 13.8% in April 2025, businesses and supermarkets have been calling on Labour to make a U-turn, but this has so far fell on deaf ears.
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Shoe zone issued a profit warning on Wednesday morning and said since the Budget they are affected by “very challenging trading conditions.”
Profits were already under pressure amid weak consumer confidence after the Budget and the ongoing cost-of-living crisis, Shoe Zone confirmed.
Shoe Zone said in a statement, “Consumer confidence has weakened further following the Government’s Budget in October 2024, and as a result of this Budget, the Company will also incur significant additional costs due to the increases in National Living Wage and National Insurance.
“These additional costs have resulted in the planned closure of a number of stores that have now become unviable. The combination of the above will have a significant impact on our full-year figures.”
The retailer estimates that in the year to 27 September 2025 profits will be “not less than” £5 million, compared to £10 previously estimated.
