120,000 jobs at risk as UK reforms corporate tax

VTV.vn - Retail and hotel associations have warned that the UK's planned corporate tax reform could cause hundreds of stores to close, threatening about 120,000 jobs.

People queue outside a job centre in London, UK. Photo: AFP/TTXVN

Chancellor Rachel Reeves' £1.7bn wealth tax plan could threaten 120,000 jobs at major retailers, retail and hospitality chiefs have warned.

The British Retail Consortium (BRC) and UK Hospitality have expressed concern about the Chancellor’s plans to impose higher corporation tax on supermarkets, hotels, holiday parks and restaurants. The trade groups estimate the changes could lead to hundreds of closures, leading to the loss of around 120,000 jobs.

Under planned corporate tax reforms, which will come into effect from April 2026, larger businesses will be taxed at higher rates to ease the burden on smaller businesses. Labour says the reforms are aimed at revitalising city centres and creating a level playing field between traditional retailers and large online retailers, especially large warehouses.

However, retail and hospitality industry chiefs have warned that this could backfire by forcing large shops and leisure facilities to close. Helen Dickinson, chief executive of the BRC, and Kate Nicholls, chair of UK Hospitality, have both stressed that without significant business tax relief, large shops and leisure facilities will be forced to close, with serious consequences for the economy, including the loss of thousands of jobs. They are calling on the Treasury to consider further business tax relief for retailers to protect hundreds of shops and jobs vital to the economy.

Retail sales fell by around 27% year-on-year in the year to October 2025, the Confederation of British Industry (CBI) said. Consumer confidence remains weak and the mood is becoming more cautious as the Autumn Budget approaches, said Martin Sartorius, CBI chief economist .

Source: https://vtv.vn/120000-viec-lam-bi-de-doa-khi-anh-cai-cach-thue-doanh-nghiep-100251028161256772.htm