Crime and taxes threaten to shutter the great British corner shop, Conservatives have warned. Shadow Chancellor Sir Mel Stride attacked Mayor of London Sadiq Khan for going on a tour of Africa while Labour decisions in the Treasury pushed shopkeepers to the brink of ruin.
He said: “Labour’s £25billion jobs tax alone is seeing jobs cut, wages frozen and investment put on hold. That’s no way to grow the economy.”
Sir Mel met with shopkeeper Kay Patel, who runs Best-One Global Food & Wine in Wanstead, East London. Mr Patel said he discussed the “financial and emotional impact of theft, as well as rising direct costs like higher National Insurance Contributions and higher business rates bills since April”.
The Shadow Chancellor said: “While Sadiq Khan poses for cameras overseas, businesses in London are crying out for help, as they’re crushed by Labour’s jobs tax, rising crime and red tape. Kay runs a fantastic local business – employing six people and serving his community every single day – but he’s being hammered by Labour’s reckless economic policies and their soft approach to retail crime.
The British Retail Consortium has sounded the alarm about how increased tax and red tape threatens part-time employment in shops. It says “up to 160,000 roles” could be at risk in the next three years.
Andrew Boff, the deputy chairman of the London Assembly, said: “Corner shops are the foundations of our high streets – small businesses that contribute up to five million jobs and £100billion of GDP. To see them struggling under the weight of crushing tax rises and police cuts should be a sign to all of us as to how dire things are becoming.
“The Government needs to stop wrapping businesses up in unnecessary costs and red tape; and the Met Police need to treat shoplifting with the seriousness it warrants.”
Tina McKenzie of the Federation of Small Businesses also expressed concern, saying: “Retailers both on and off our high streets are being worn down by rising [National Insurance contributions] and punishing business rates bills. Add in rising retail crime and the impending Employment Rights Bill, there’s little wonder that confidence amongst small firms is so low.
“It’s key that we see targeted reductions to [small to medium enterprises’] business rates in the Autumn Budget and a big emphasis on high streets, and beyond, in the upcoming small business strategy, which backs entrepreneurs, encourages growth and powers up local economies.”
A spokesperson for the Mayor of London defended his visit to a series of African states, saying: “London is a global city and the Mayor makes no apology for banging the drum for the capital overseas to promote growth and to generate new investment opportunities. With trade between the UK and Africa worth almost £50billion in 2024 and UK exports up 7% year on year, the Mayor has been delighted to visit Nigeria, Ghana and South Africa to boost trade links and strengthen cultural ties this week – the first Mayor to lead a trade mission to the continent.”
His team insists supporting small businesses and high streets is a “top priority”.
A Labour spokesman said: “Mel Stride has a chronic habit of forgetting his own Government’s record in office. After the Tories crashed the economy, businesses were pummelled with higher costs and spiralling rents.
“Hardworking business owners will see through Stride’s utter shamelessness. Through this Labour Government’s plan for change, business confidence is at a record nine-year high and our modern industrial strategy will help cut energy costs for businesses.”