Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what estimate they have made of the number of jobs lost in the retail sector as a result of high street store closures; and what proportion of those losses they attribute to recent increases in employer National Insurance contributions and the National Living Wage.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Department recognises the pressures facing high streets and the implications for employment in the retail sector. Our Plan for Small and Medium Sized Businesses places high streets at the centre of economic renewal, supporting SMEs through improved finance access, reduced regulatory burdens and enhanced business support through the Business Growth Service.
The Government has not undertaken any modelling to evaluate the relationship between retail job losses and recent adjustments to employer National Insurance contributions or increases in the National Living Wage.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they expect the rate of high street store closures and retail job losses to increase or decrease over the next two years; and on what evidence or modelling that assessment is based.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has not undertaken any assessment or modelling on this subject.
Our Plan for Small and Medium Sized Businesses, published in July, places high streets at the centre of economic renewal, recognising them as vital centres of growth and employment. SMEs on the high street will also benefit from new tools to unlock access to finance, action on late payments and regulatory costs, greater digital adoption and easier pathways to business support through the Business Growth Service.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the cumulative impact of business rates, employer National Insurance contributions, and wage regulation on the competitiveness of bricks-and-mortar retailers compared with online-only retailers.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Government works closely with the Retail Sector Council and industry bodies to help inform support for bricks and mortar businesses and ensuring a level playing field with online only retailers, including targeted reliefs and measures.
The government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £900 million per year, benefiting over 750,000 properties. To protect businesses from bill increases following the 2026 revaluation, a £4.3 billion support package is being implemented over three years.
Additionally, the retail sector will benefit from a rebalanced business rates system, with large distribution warehouses paying around £100 million more in 2026/27, with this funding directly lowering bills for in-person retail. The government has also launched a Small Business Plan aimed at removing barriers holding back businesses and breathing new life into high streets.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to support high street retailers facing rising cost pressures, including increases in employer National Insurance contributions and the National Living Wage; and what assessment they have made of the adequacy of existing support measures for preventing further store closures.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £900 million per year, benefiting over 750,000 properties. We are also implementing a £4.3 billion support package over three years to protect businesses from bill increases following the 2026 revaluation.
The Employment Allowance has more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities will either gain or see no change this financial year. We also launched a Small Business Plan aimed at removing barriers holding back businesses and breathing new life into high streets.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the effect of rising labour costs on businesses operating in the hospitality and retail sectors, and what steps they are taking to ensure employment remains viable in those sectors.
Answered by Baroness Jones of Whitchurch
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. A full Impact Assessment on NMW was published and received a Green ‘fit for purpose’ from the Regulatory Policy Committee on Tuesday 4 February 2025.
The Government will protect the smallest businesses by increasing the Employment Allowance to £10,500. This means that this year, 865,000 employers will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
The Hospitality Sector Council and the Retail Sector Council continue to consider key issues and opportunities, including employment and how to encourage growth across both sectors.