High Street crunch as 10,000 independent firms face going bust

TENS of thousands of businesses and jobs could be lost in high streets as the cost-of-living crisis worsens and consumer confidence hits an all-time low.

High street chiefs now fear 10,000 of the UK’S 100,000 independent retailers are at risk of going bust, with another 10,000 of the 140,000 hospitality businesses also facing closure. Soaring inflation, operating costs and falling customer spending are blamed.

Latest official figures show retail sales fell 0.5 per cent last month, with consumer confidence levels at a record low.

Andrew Goodacre, chief executive of the British Independent Retailers Association, said: “There is not a positive trend at the moment on the high street.

“Consumer expenditure is definitely down and consumer confidence is at an all-time low.

“If the Government wants to get people to come out to high streets, they have to look at the things that damage consumer confidence, like having to spend £100 on a tank of fuel.

“The cost-of-living crisis is really biting across the board and there is no doubt people’s behaviour is changing.they are changing what they are buying and the frequency of buying.

“Whether young or old, working or middle class, the freedom to spend is being restricted.”

The retail chief has been dismayed by a leaked government plan, expected to start running this month, that will see business leaders asked to help beat inflation by cutting prices. The Government’s new cost-ofliving tsar David Buttress is thought to have put this forward, arguing retailers can cut prices by reducing spend on marketing. Mr Goodacre said this is a “flawed idea” that could be “divisive” – as it only applies to large retail chains with big marketing budgets.

He said: “This policy also assumes that retailers are adding on all the increases, which is simply not true.

“Supply chain inflation has been ahead of consumer inflation for some time, and as a result independent retailers have been operating on reduced margins by suppressing prices.”

‘No positive trend right now’