Shadow Business Secretary Andrew Griffith has warned Britain’s high streets face a “perfect storm” of financial pressures, which have been worsened by Chancellor Rachel Reeves’s employment tax policies.
The Conservative MP said town centres are struggling with rising costs and growing regulatory demands on retailers and hospitality firms.
His comments follow a new report from Parliament’s Business and Trade Committee, which examined the challenges facing high street businesses.
The committee highlighted business rates, retail crime, staffing costs and energy bills as major pressures. It said these costs fall especially heavily on high street firms compared with other sectors.
Mr Griffith said the findings match what he hears from business owners trying to stay afloat. Many, he said, are finding it difficult to maintain staffing levels and cover fixed costs while consumer spending remains weak.
He described a recent visit to Godalming with Conservative leader Kemi Badenoch, where they met shop owners, café operators and family‑run businesses.
He said several told him current policies threaten their long‑term viability.
Britain’s high streets face a perfect storm of financial pressures according to Andrew Griffith
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Mr Griffith argued Labour’s employment levy has increased staffing costs.
He labelled the Government’s employment legislation an “Unemployment Bill”, saying it will mean fewer jobs, more shuttered shops and emptier high streets.
He also said rising business rates are placing a heavy strain on traders because they must be paid regardless of profitability or footfall.
The Conservatives have said they would scrap business rates for tens of thousands of high street firms.
He said locals were reporting overtaxation as a hinderance to their businesses
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Google Street ViewThey say the policy would be funded through welfare reforms designed to encourage more people into work.
The party has also set out plans to reduce retail crime, including recruiting 10,000 additional police officers.
Mr Griffith said shoplifting and verbal abuse are becoming more common. He said the Conservatives would strengthen neighbourhood policing, end early prisoner release schemes and expand police powers to protect businesses.
He added: “Only the Conservatives have the team, the plan and the leader with experience of business and the backbone to act.”
Andrew Griffith said Labour would focus on taxation and regulation
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GB NewsThe party has also pledged to remove the carbon tax on electricity under its Cheap Power Plan. It says this would cut energy bills for hospitality firms, with typical restaurants saving nearly £5,000 and pubs more than £1,100.
Mr Griffiths said Labour would focus on taxation and regulation, while the Conservatives would prioritise reducing costs and supporting investment.
His comments come as many town centres continue to face rising operating costs and shifting consumer behaviour.
Industry groups have repeatedly warned about the long‑term sustainability of some high street businesses under current pressures.