Costs Crisis in Retail Sector Could Lead to Political Shake-Up, Research Shows

Key Points:

• Research predicts 300,000 retail employees to leave the sector by 2028, impacting deprived areas heavily reliant on retail jobs.

• Labour MPs urge Chancellor Rachel Reeves for more support to prevent a crisis on the High Street.

• Retail Jobs Alliance research indicates potential shift in voting patterns as a result of increased costs for businesses.

CRIPPLING costs for retail will create a "perfect storm" paving the way for Reform to win up to a dozen MPs, new research reveals. Three hundred thousand employees are expected to leave the sector by 2028 with more deprived areas heavily reliant on jobs in the sector. Labour MPs are today calling for more support from Chancellor Rachel Reeves to help the industry and provide more help for the High Street. The impact of the hikes to national insurance for firms and proposed business rates changes could make a major hit to the retail sector and see voters switch parties.

New research from the Retail Jobs Alliance, which includes names such as ASDA, Primark, and Tesco, has examined the number of workers in each constituency employed in bricks-and-mortar retail. Labour holds 24 out of the 30 constituencies with the highest proportion of retail workers - and Reform could potentially secure half of Sir Keir Starmer's seats. The constituencies that may see a political shift include Redcar, Hartlepool, Dover & Deal, and Blaydon & Consett.

Labour MPs Anna Turley and Polly Billington are advocating for more government support to protect retail jobs. Anna Turley, MP for Redcar, emphasized the importance of retail beyond just employment, highlighting its role as a social hub and essential service provider within communities.

A spokesperson from the Retail Jobs Alliance expressed concerns about the financial pressures facing retailers, emphasizing the need for government recognition and support to sustain the industry. The alliance highlighted the significant role of retail in creating jobs and serving as vital community spaces.