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'200,000 jobs to be cut' in 2025, making it the worst year for high street since COVID. With experts forecasting that 200,000 jobs could be lost and that product prices will soar, businesses may be in trouble as we enter the new year. This is the worst rate since the pandemic.
ET Year-end Special Reads 2024 Rewind: Elections, extreme weather, sporting glories, moments that made history, and heartfelt goodbyes Sensex & Nifty in 2025: Predictions, targets, must-have stocks for the new year From Adani bribery allegations to PayTM Bank ban: Six shocks that rocked India Inc in 2024 How Will Labour's Policies Impact UK Businesses? With statistics indicating 2025 will be the worst fiscal year for retailers since the pandemic, experts have painted a bleak picture of the high street, as quoted in a report by the Daily Star. ALSO READ Kim Kardashian is obsessed with Princess Diana, she is on a mission and doing this Research on store and company closures on UK high streets was conducted by the Centre for Retail Research (CRR). Labour recently unveiled new policies in their budget that are reportedly going to have a significant impact on businesses.
They claimed that higher business rates and employment costs, which Rachel Reeves introduced in November, could result in the loss of up to 202,000 jobs the following year. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrows Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development A Comprehensive ASP.
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Lower wages, fewer employees, and higher customer prices are the main effects of the new budget on workers. A total of 169,395 retail jobs have already been lost by businesses this year, a 41.9% increase over 2023.
Major high-street retailers like The Body Shop, Homebase, and Carpetright have gone out of business this year. Joshua Bamfield, a professor at the Centre, told This Is Money that many retailers had to make even more drastic cuts due to the issues of shifting consumer shopping habits, inflation, and rising energy costs, rents, and business rates. Many businesses relied on the business rate relief, which has been reduced in the new budget.
The rate has been lowered even though it has been extended once more for the retail, hospitality, and leisure industries. The rate will now be reduced to 40% from its previous 75%. With their rates bill for 2025–2026 nearly doubling, many UK businesses will be hard hit.
Experts believe this will take the UK back to pandemic levels, which saw severe recession and an unprecedented drop in GDP. Additionally, 345,000 businesses shut their doors in 2022 following massive COVID disruption. FAQs Why are job losses predicted for the UK in 2025? Higher business rates and employment costs, combined with inflation and energy expenses, are forcing retailers to cut jobs and close stores, as outlined in Labour's recent budget.
Which businesses will be the most impacted? Independent and smaller businesses, particularly those in retail, hospitality, and leisure, will struggle the most as a result of reduced rate relief and rising operational costs. (You can now subscribe to our Economic Times WhatsApp channel ).
