New research cited by the British Independent Retailers Association (Bira) has suggested worrying developments in labour-intensive sectors, with retail said to be “among the worst-hit industries last year”.
According to data acquired by the organisation and initially formulated by law firm Shakespeare Martineau, hospitality also accounted for 10 percent of UK administrations in 2024.
As such, both retail and hospitality made up 55 percent of the 1,718 administrations over the period. Construction, manufacturing and real estate sectors made up the remaining lot.
In light of this worrying development, chief executive officer of Bira, Andrew Goodacre, called for “urgent measures” to support, in particular, independent high street businesses, which he said were “under immense strain, with a difficult economic climate coupled with growing tax burdens” creating a challenging environment.
He added: “Without urgent measures to support these businesses, we risk losing the unique character and diversity that independents bring to our high streets. Action is needed now to ensure their survival in 2025 and beyond.”
In a separate statement, Andy Taylor, partner and head of restructuring at Shakespeare Martineau, cited “prolonged periods of difficult trading, exacerbated by geopolitical tensions and the impact of new tax burdens introduced in the latest budget” as factors that could “intensify the pressures many businesses are already grappling with”.
Taylor continued: “Labour-intensive sectors, such as retail, hospitality, and construction are particularly vulnerable as they often struggle to absorb rising overheads and additional costs…there is a real risk that without targeted support, more businesses will be forced to make difficult decisions, including cost-cutting measures, layoffs, or even closure.”
