Scottish Retail Consortium voices fears over new taxes and regulations
NEW UK taxes and regulations will put 13,000 part-time shopworker jobs in Scotland at risk over the next three years, the Scottish Retail Consortium (SRC) is warning.
The alarming figure follows analysis by the broader British Retail Consortium of the impact on the UK retail industry from upcoming changes to employment policy, including the hikes in employers’ National Insurance contributions (NICs) and National Living Wage unveiled in Chancellor Rachel Reeves Autumn Budget.
Part-time roles are particularly susceptible to the upcoming changes in the employer NICs thresholds, with retailers to be taxed for any employee earning more than £5,000 – down from the current level of £9,100. This will make it significantly more expensive to hire part-time workers than previously.
These effects would be compounded by some of the proposed changes under the Employment Rights Bill, which could force firms to reduce the number of local, flexible jobs. This would have the biggest impact on part-time workers, including seasonal and student jobs.
The call to protect part-time jobs comes as the British Retail Consortium launches its 2025 Manifesto for Retail, which outlines a path for the retail industry to help kickstart investment in growth, people, and sustainability across the UK.
SRC director David Lonsdale said: “The UK Budget’s swingeing increase in employers’ NICs will add £190million a year to Scottish retailers’ outgoings.
“Given retail’s paper-thin profit margins, this is the equivalent of having to sell an extra £3billion of goods each year to offset the cost and maintain margins. Meanwhile, the Scottish Budget will see a further £7.6million added to retailers’ business rates bills this spring.
“These expensive statutory costs will tighten the fiscal screws on the industry in 2025 and cannot simply be absorbed. This will have consequences for staffing levels, including part-time and entry level roles, for commercial investment, and for prices charged to customers.”
