Staggering 8,000 firms to close stores like Wilko as Labour demands action

26 August 2023 , 19:39

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Staggering 8,000 firms to close stores like Wilko as Labour demands action

Labour has called for urgent action to save businesses as more than 8,000 firms were set to follow Wilko in closing high street stores.

The party’s analysis of official survey results found around 8,679 businesses expected to shut down premises in the next three months. It comes after hardware chain Wilko announced all 400 of their stores nationwide are set to close, leaving 12,500 workers facing redundancy.

“The news from Wilko this week has been devastating but Government inaction risks seeing thousands more high street businesses follow suit,” Shadow Business Secretary Jonathan Reynolds said. “We cannot go on with the shuttered up shops and struggling high streets that have become the norm after 13 years of Conservative economic failure. But where on earth are the ideas from the Government about how to fix any of this?”

High streets have been the target of rising costs due to skyrocketing inflation, steep tax rises and spiking energy bills. Meanwhile, a decade of low growth means footfall has fallen across the country and firms have struggled to attract customers. Local economies impacted by these harsh increases have led to more boarded-up shops, making high streets less pleasant places to shop, eat and relax.

Mr Reynolds challenged the government to take up the party’s plan to revitalise Britain’s high streets. The five-point plan would see business rates cut for small businesses, firms offered help to cut their energy bills and councils given powers to take over empty shops and bring them back into use.

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The party also pledged to tackle anti-social behaviour in town centres, and introduce new laws to stamp out late payments from big firms.

“ Labour has a plan that will tackle the things holding firms back. We will work in partnership with businesses and local communities to get our high streets thriving again,” Mr Reynolds added. “This is just one of the ways we will deliver our mission to secure the highest growth in the G7, so every part of our country can feel better off.”

Mikey Smith