UK retail could shed 160,000 part-time jobs after employer tax increase, says trade body

LONDON (Reuters) - Up to 160,000 part-time retail jobs in Britain are at risk of being lost over the next three years as a result of higher employer taxes and regulatory changes, the British Retail Consortium (BRC) trade body warned on Wednesday.

As the UK economy struggles to grow, the Labour government's solution was to increase employer taxes in finance minister Rachel Reeves' October budget to raise money for investment in infrastructure and public services, prompting criticism from the business community.

The BRC, which represents most of the UK's biggest retailers, said that rising employer National Insurance contributions (NICs) and a 6.7% jump in the national minimum wage will add 5 billion pounds ($6.3 billion) to retailers’ labour costs in 2025 alone, increasing pressure on the industry to reduce staffing levels.

Part-time roles are particularly susceptible to the changes in the employer NICs, the BRC said. Retailers will be taxed for any employee earning more than 5,000 pounds, down from the current threshold of 9,100 pounds, making it significantly more expensive to hire part-time workers.

The BRC said the impact would be compounded by some of the proposed changes to employment legislation being considered by parliament, which it said could force companies to reduce the number of flexible jobs, including seasonal and student jobs.

"One in 10 part-time retail roles are now at risk of being lost," said BRC Chief Executive Helen Dickinson.

“Retailers face a mountain of costs from the budget and, while they continue to absorb costs where they can, higher prices and job losses are inevitable."

The government has said the budget measures were needed to fill a 22 billion pound "black hole" it inherited from the previous Conservative administration. It has said difficult choices had to be made to restore economic stability.

($1 = 0.7926 pounds)

(Reporting by James Davey; Editing by David Goodman)